Welcome to the IMA Tax Policy Blog. The blog format reflects our efforts to provide IMA members with timely, relevant and thought provoking information in a form that is accessible for easy reference. IMA’s Tax Policy Blog will be updated on a regular basis. Weekly news update emails will be sent out to notify subscribers of new information posted on the blog. IMA members are welcome to submit material for the blog, or request specific information. Simply email Editor Stefany Henson at shenson@ima-net.org with your information or request. Editorial submissions are subject to review. 

Wednesday
Oct222014

Information for Employers about Their Responsibilities Under the Affordable Care Act

If you are an employer, the number of employees in your business will affect what you need to know about the Affordable Care Act (ACA).

Employers with 50 or more full-time and full-time-equivalent employees are generally considered to be “applicable large employers” (ALEs) under the employer shared responsibility provisions of the ACA. Applicable large employers are subject to the employer shared responsibility provisions. However, more than 95 percent of employers are not ALEs and are not subject to these provisions because they have fewer than 50 full-time and full-time-equivalent employees.

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Wednesday
Oct222014

Evaluating the Impact of Thomas Piketty’s Wealth Tax on America’s Poor, Rich, and Middle Class

In Capital in the Twenty-First Century, bestselling author and economist Thomas Piketty argues for a tax on wealth, ranging from 0.5 to 2 percent, in order to combat what he views to be the most pressing economic issue of our time: income inequality. This wealth tax is a fundamental element of Piketty’s policy recommendations. However, the implementation of this kind of tax in America is not only impractical, but could also result in large declines in investment, employment, wages, and national output, according to a new analysis from the nonpartisan Tax Foundation.

“We found that Piketty’s wealth tax would indeed reduce income and wealth inequality, but at the cost of making everyone significantly poorer,” said Tax Foundation Fellow Michael Schuyler, PhD. “Further, it would be profoundly impractical, considering the large, additional compliance costs it would place on many households, the difficulty of enforcing such a tax, and a constitutional barrier limiting the power of the federal government to impose a direct tax. These problems would not go away even if the wealth tax were global.”

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Wednesday
Oct152014

How Much Do Americans Pay in Cell Phone Taxes?

Americans pay 17 percent in federal, state and local cell phone taxes, according to a new study from Scott Mackey and Joseph Henchman of the Tax Foundation. On average, wireless customers pay states and local governments an average tax rate of 11.23 percent, in addition to a 5.82 percent federal tax rate. Notably, the cell phone tax is twice the amount of taxes on other consumer goods and services, and some customers (in Washington, Nebraska, New York, Florida, Illinois, Rhode Island and Missouri) pay taxes worth more than one-fifth of their cell phone bill. The amount of taxes vary between states:

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Wednesday
Oct152014

Businesses Paid Nearly $671 Billion in State and Local Taxes Last Year

By Liz Malm of the Tax Foundation

Each year, the Council on State Taxation (COST) estimates the share of total state and local taxes that are paid by businesses. The latest edition of the report found that firms paid 44.9 percent of total U.S. state and local taxes last year — amounting to nearly $671 billion.

Here’s the breakdown by tax type:

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Wednesday
Oct082014

Illinois CPA Society’s Manufacturing Conference — Wednesday, October 22nd — Oakbrook Terrace

The manufacturing industry is a vibrant part of the US economy and now experiencing a changing landscape with new opportunities and challenges. The new Illinois CPA Society Manufacturing Conference will provide important key updates for those working within this sector in both public accounting and corporate finance.

Featured keynote speakers include Greg Baise, President & CEO, Illinois Manufacturing Association (IMA); James Hrabak, CFA, Chief Investment Officer, MB Financial Bank, Rosemont, IL; Spencer Klein, CFA, Sr. Portfolio, MB Financial Bank, Rosemont, IL; and Karen Kurek, CPA, National Industrial Products Practice Leader/Partner, McGladrey, Chicago, IL

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