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. 

Thursday
Sep182014

Illinois expands applicability of insurance self-procurement tax

Note from the IMA: The Illinois Manufacturers’ Association opposed SB 3324 and asked Governor Quinn for a veto. The IMA is leading a coalition to repeal this new tax that was passed under false pretense.

McGladrey TAX ALERT | September 16, 2014

On Aug. 15, 2014, Illinois Governor Pat Quinn signed SB 3324, Public Act 98-0978 (the Act), amending the state’s insurance self-procurement tax effective Jan. 1, 2015, to narrow the definition of exempt industrial insureds, effectively expanding the applicability of the tax to many businesses that were previously exempt.

The Illinois insurance self-procurement tax is a 3.5 percent insurance premiums tax imposed on Illinois-based businesses that procure insurance from non-Illinois insurers that are not licensed to do business in the state. Under current law, the state provides a self-procurement tax exemption for industrial insureds.

Click to read more ...

Thursday
Sep182014

U.S. Ranks 3rd Worst for International Tax Competitiveness among Developed Nations

New study reveals Estonia, New Zealand, and Switzerland have most competitive tax codes

The United States has the 3rd least competitive tax code in the OECD, trailed only by Portugal and France, according to the 2014 International Tax Competitiveness Index (ITCI) released this morning by the nonpartisan Tax Foundation. The report finds that Estonia (#1), New Zealand (#2), and Switzerland (#3) have the most competitive tax codes among developed nations.

The ITCI attempts to determine which countries provide the best tax environment for investment and business growth and development. It does this by measuring the competitiveness of tax systems in the OECD’s 34 countries based on over 40 tax policy variables in five categories: corporate income taxes, individual taxes, consumption taxes, property taxes, and the treatment of foreign earnings.

Click to read more ...

Thursday
Sep112014

Tax considerations for expats

by Sarah Waters, Director | McGladrey PERSPECTIVE | September 09, 2014

When employees are selected to work outside their home country (referred to as expatriates or expats), they may face many concerns. These can include settling into their new home, helping their children get adjusted to a new school and learning the local language, all while focusing on performing well in their new job position. The last thing the expat needs added to the list is concern around their compensation and the global tax rules that may impact them. Although well-intentioned, most manufacturing CFOs and human resources personnel are not aware of all the compensation and tax issues that might impact an expat, and therefore, cannot address these issues when working out the details of the expat’s proposed assignment overseas. Experience shows that good assignment planning before the assignment begins is important and will help minimize issues down the line.

Click to read more ...

Thursday
Sep112014

U.S. has Third Highest Top Marginal Corporate Income Tax Rate in the World

New Report Highlights Worldwide Corporate Tax Rates and Trends

Although it is well documented how the United States compares to other countries in the OECD, it is less well known how we stack up against other countries and tax jurisdictions throughout the world. According to the latest summary of worldwide corporate tax data from the nonpartisan Tax Foundation, the United States has the third highest general top marginal corporate income tax rate in the world at 39.1 percent, surpassed only by Chad and the United Arab Emirates.

In a survey of 163 countries, the report details the top corporate tax rates for each country, the average top marginal corporate tax rates and trends by region, and the distribution of worldwide corporate tax rates.

Click to read more ...

Thursday
Sep042014

An Update on Marijuana Taxes

New report offers overview of Colorado and Washington’s experiences with taxing marijuana

The debate over marijuana legalization is not going away. DC, Alaska, and Oregon will vote on legalization measures in November and 13 other states will likely push for similar ballot initiatives and legislative efforts in the near future. As this progress unfolds, it is important to keep track of the new approaches and proposals to taxing marijuana. Currently, two states have legalized marijuana sales and have put new tax structures into place: Washington and Colorado. A new report from the nonpartisan Tax Foundation examines each state’s experience thus far.

Click to read more ...