Econ Comments & Analysis
Real Clear Markets | Unlocking Entrepreneurial Forces: States Can Spark Business Creation, Attract Venture Capital Investment, and Increase Job Growth by Eliminating Taxation of Capital Gains
Taxation of capital gains is, among other things, a tax on entrepreneurship. Businesses – new businesses especially – need investment to flourish. States that have lowered their taxes on capital gains have seen an increase in investment which precipitated an increase in entrepreneurial activity and the job creation that accompanies it.
CRS | The Impact of Budget Proposals on Tax-Exempt Bonds
Under current law, interest income from bonds issued by state and local governments is exempt from federal income taxes. In addition, interest on bonds issued by certain nonprofit entities and authorities is also exempt from federal income taxes. Together, these tax preferences are estimated to generate a federal revenue loss of $309.9 billion over the 2012 to 2016 budget window.
CATO | The Pleasures And Perils of Tax Loopholes
To some degree, a loophole is in the eye of the beholder. As U.S. Senator Russell Long explained, “A tax loophole is something that benefits the other guy. If it benefits you, it’s a reform.”
