Limit Tax Deductions for Lower Rates, Not Just Deficits

Feldstein Plan Scores on Revenue but Fails on Growth — By Richard Morrison, The Tax Foundation

Limiting personal tax deductions solely to reduce the deficit would slow economic growth, lowering the nation’s gross domestic product 73 cents for every dollar of new revenue raised, according to a new analysis by the Tax Foundation. A superior strategy would be to use deduction limits to lower marginal tax rates, either on their own or in conjunction with a long-term plan for deficit reduction.

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Expensing for Economic Growth

By Richard Morrison, The Tax Foundation

Financial Accounting Quirks Thwart Real Tax Reform

In order to achieve faster economic growth and greater job creation, Congress must look closely at rules governing expensing and depreciation for business investments, according to a new study by the Tax Foundation. The tax treatment of these accounting procedures could mean the difference between a larger, growing economy and an unproductive period of stagnation.

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How Easy Is It to Find Tax Information on State Websites?

By Ellen Kant and Joseph Henchman, The Tax Foundation

Fiscal Fact No. 365: How Easy Is It to Find Tax Information on State Websites?

It’s April, which means Americans are rushing to finish federal and state income tax returns for 2012. Those who file a paper return rely on forms and rate tables posted online by the Internal Revenue Service (IRS) and state revenue departments. Even taxpayers who file returns with the help of paid tax preparers or computer software may make use of instructional information provided on state websites. Employers, for instance, need to know 2013 tax rates now for withholding purposes.

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Managing information security risk

Manufacturers and distributors may not be aware of their own vulnerability when it comes to information security. In the 2012 McGladrey Manufacturing & Distribution Monitor survey, more than three-quarters of businesses reported that their information is at little or no risk. Despite the concerns of some executives participating in the study, very few felt that their information is actually at risk.

There are, however, rising threats to information security. A 2011 study of business banking customers found that 56 percent of businesses experienced a fraud episode within the last 12 months, with 61 percent of those victimized more than once.

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Tax Freedom Day Arrives April 18th in 2013

By Richard Morrison, the Tax Foundation — Deficit Adds 21 Additional Days of Government Spending

Tax Freedom Day will arrive on April 18th this year, the 108th day of 2013, according to the Tax Foundation’s annual calculation. Americans will work well over three and a half months of the year before they have earned enough money to pay this year’s tax obligations at the federal, state, and local levels. Both higher federal taxes and rebounding incomes contribute to this year’s date, which is five days later than in 2012.

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