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
May262016

Chicago Attempts Yet Another Tax Increase to Rescue Pensions

Posted by Daniel Savickas, Americans for Tax Reform, on Tuesday, May 24th, 2016

Chicago Mayor, Rahm Emanuel, is trying to save his city’s bleeding pension fund by raising its phone tax for the second time in as many years. This new tax increase is meant to back up a $600 million General Obligation Bond the Chicago government issued.

The decision by Emanuel comes on the heels of the Illinois Supreme Court striking down his previous plan, the Chicago Pension Reform Act (CPRA). Under CPRA, employee contributions to the pension plan would have to be increased 29 percent, and tweaks were made to adjustments in Social Security.

This new phone tax is nothing new for Chicago taxpayers. In 2014, the wireless tax was raised by 56% from $2.50/month to $3.90/month for every phone line, wired and wireless phone. According to Randy Nehert, the President of the Illinois Telecommunications Association, this would cost a family of four an extra $425 a year. That tax was also meant to save the Laborers’ Pension Fund.

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Thursday
May262016

RSM Publishes Second Edition of The Global Real Economy

Economic Publication Outlines Four Biggest Global Risks Facing the Middle Market

RSM US LLP (“RSM”) — the nation’s leading provider of audit, tax and consulting services focused on the middle market — recently released the second edition of The Global Real Economy, a semi-annual global edition of the firm’s flagship publication, The Real Economy. Led by RSM Chief Economist Joe Brusuelas, The Global Real Economy is part of a larger effort by RSM to provide clients with actionable insights and middle market-focused analysis around critical international business issues.

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Thursday
May192016

RSM Named Tax Provider of the Year, Recognized with EMMA

RSM US LLP (RSM) – the nation’s leading provider of audit, tax and consulting services focused on the middle market – was recently recognized by the Forum for Expatriate Management (FEM) as Tax Provider of the Year, and presented with the organization’s esteemed Expatriate Management and Mobility Award (EMMA).

Now in its seventh year, the FEM Americas Summit and EMMAs bring together annually the global mobility sector, consultants, industry experts and HR specialists to discuss current and new prospects in the ever-growing and complex field of expatriate management.

To help internationally mobile employees understand tax and other financial ramifications of their expatriate assignments, RSM’s international assignment services team designs customized educational programs with topics ranging from benefits participation and Affordable Care Act implications to payroll structure and tax equalization policies. These programs help eliminate employee anxiety related to international assignments, allowing them to focus on their companies’ global success.

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Thursday
May192016

New Reports Examine Marijuana Taxation in the U.S.

By Richard Borean, The Tax Foundation — How have states faired so far? What lessons can other states learn? How much federal revenue could marijuana legalization produce?

The nonpartisan Tax Foundation recently released two new reports on the federal and state taxation of marijuana. The first examines how much revenue the federal government could raise in taxes from a fully developed, legal marijuana industry. The second examines the experiences Colorado and Washington have had with taxing marijuana, and provides guidance for states seeking to tax these products in the future.

“Legalization is happening in several states and that number is going to go up. Federal and state policymakers can benefit from the lessons learned in the first few states,” said Tax Foundation Vice President of State and Legal Projects Joseph Henchman.

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Thursday
May052016

State and Local Individual Income Tax Collections Per Capita

By Jared Walczak, The Tax Foundation

Individual income taxes are the single largest source of state tax revenue in the United States, accounting for 36.5 percent of all state revenue in fiscal year 2013 despite the fact that nine states forego a tax on wage and salary income. Among states (and the District of Columbia) imposing an individual income tax on wage income, the tax accounts for an average of 43.4 percent of all state collections.

Income taxes tend to be less important to local governments overall, accounting for 4.8 percent of local tax collections. Over 91 percent of all state and local income tax revenue flows to state governments. Low collections at the local level is at least partly due, however, to their lesser ubiquity. They represent 13.8 percent of collections in the thirteen states (and the District of Columbia) permitting local income taxes, ranging from de minimus collections in Oregon to 31.7 percent of local revenue in Maryland. Local governments in six states—Indiana, Kentucky, Maryland, New York, Ohio, and Pennsylvania—generate more than 10 percent of their revenue from individual income taxation, as does the District of Columbia.

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