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
Apr292015

U.S. Tax System Is Holding Us Back

NAM and MAPI Foundation Release White Paper Showing Competitive Disadvantage — by Mallory Micetich

A white paper released recently by the National Association of Manufacturers (NAM) and the Manufacturers Alliance for Productivity and Innovation (MAPI) Foundation highlights that the U.S. corporate tax system is a drag on manufacturers’ global competitiveness. 

The white paper looks at tax rates throughout the developed world. Findings include the following:

• The current global tax system in the United States puts manufacturing firms at a disadvantage inside and outside foreign countries.

• The already high corporate tax rate, coupled with double taxation of dividends and capital gains, reduces economic efficiency.

• Other countries are lowering their statutory corporate tax rates while the U.S. rate remains the highest among developed countries.

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Wednesday
Apr292015

Nearly Half of U.S. Employers Expected to Hit the Health Care “Cadillac” Tax in 2018 with 82% Triggering the Tax by 2023

Companies may not be aware of all factors determining tax

Despite continuing efforts to rein in rising health care costs, roughly half of large U.S. employers will begin to hit the excise tax in 2018 and the percentage is expected to rise significantly in subsequent years, according to an analysis of large employer health care programs conducted by global professional services company Towers Watson. Further, the size of the tax burden is expected to be substantial as the Congressional Budget Office (CBO) estimates the total liability for companies subject to the tax could be a cumulative $79 billion between 2018 and 2023.

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Thursday
Apr232015

State and Local Sales Tax Data for 2015

How does your state compare to its neighbors?

The nonpartisan Tax Foundation recently released an updated report of sales taxes throughout the states in 2015. Using a population-weighted average of local sales taxes, the report details the combined state and local sales tax rates for each state and explains how sales taxes fit into a state’s overall tax structure.

The key findings include:

45 states collect statewide sales taxes.

38 states collect local sales taxes.

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Thursday
Apr232015

Tax Complexity Is Expensive for Small Businesses

By Andrew Lundeen, The Tax Foundation

Taxes are time consuming and expensive for small businesses in the United States.

Nearly a quarter of small business owners in the United States spend over 120 hours each year dealing with their federal taxes, according to the most recent survey by the National Small Business Association. That’s three work weeks spent dealing with federal taxes. Additionally, over half of small business owners spend more than one work week (40 hours) on federal taxes each year, according to the most recent survey by the National Small Business Association.

According to the survey, these taxes come with a heavy cost as well, with over a quarter of businesses spending more than $10,000 each year on simply the administration of federal taxes. This does not include the actual tax burden, which 42 percent of respondents said creates the largest burden on their business.

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Wednesday
Apr152015

Tax Freedom Day® 2015 Arrives in Illinois on April 30

43rd state to reach Tax Freedom Day, 6 days earlier than national average Washington, DC

Illinois’s Tax Freedom Day, the day when taxpayers in the state have collectively earned enough money to pay their federal, state, and local tax bill for the year, will arrive on April 30. This makes it the 43rd state to reach Tax Freedom Day in 2015. According to the annual report by the nonpartisan Tax Foundation, national Tax Freedom Day falls on April 24, 114 days into the year and nine days after the tax filing deadline. Each state’s total federal, state, and local tax burden varies greatly. Tax Freedom Day arrives earliest in Louisiana on April 2 and Mississippi on April 4. Connecticut and New Jersey will be the last to reach Tax Freedom Day this year on May 13. “Tax Freedom Day gives us a vivid representation of how much we pay for the goods and services provided by governments at all levels,” said Tax Foundation Economist Kyle Pomerleau. “Arguments can be made for if and why the tax bill is too high or too low, but in order to have an honest discussion, it’s important for taxpayers to understand cost of government. Tax Freedom Day helps people relate to that cost.” The study’s key findings include:

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