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
Jun112015

An Overview of Gross Domestic Income in the U.S.

New study examines historical GDI trends and what they mean to the income inequality debate

The Tax Foundation has released an overview of the BEA’s data on Gross Domestic Income (GDI), the lesser-known cousin of Gross Domestic Product (GDP). While GDP measures what gets purchased, GDI measures who gets paid and is useful for determining how Americans earn their incomes and maintain their standards of living.

Using this data series has some distinct advantages. Unlike almost any other income data, it is complete; it adds up to the total value of all economic production. Additionally, the BEA has put together data on American GDI going back to the start of the Great Depression, making it a very long-running data series.

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Wednesday
Jun032015

Illinois Illustrated: A Visual Guide to Taxes & the Economy

Illinois is at a turning point. It currently faces a large volume of unpaid bills, a multibillion dollar budgetary shortfall, and the partial sunset of tax increases from 2011. Between all of this and the state’s failed attempt at pension reform, Illinois is in need of policy solutions. Budget, revenue, and structural proposals are all currently on the table, but tax reform needs to be part of the discussion.

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Wednesday
Jun032015

What Are Flat Taxes?

Several Republican presidential hopefuls have stated their support of the “Flat Tax.” Ted Cruz, Ben Carson, and Rand Paul have all expressed interest in a tax reform plan that moves our current code to a new “Flat Tax.” As a result, there is renewed interest in what a Flat Tax is, what its pros and cons are, and how it could impact different taxpayers.

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Wednesday
May272015

Small Business Retirement Plan Penalty Relief Expires Soon

You still have time to file retirement plan tax returns for your small business. Under the IRS special penalty relief program, you can avoid stiff penalties for filing late. However, you must act soon. Here are some key points you should know about this program: Late Filing Penalties. Plan administrators and sponsors who fail to file required forms can face penalties of up to $15,000 per return. The plan usually must file Form 5500-EZ each year. Penalty Relief Deadline. A special program provides penalty relief for late filers. Those who are eligible can avoid these penalties by filing late returns by June 2, 2015.

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Wednesday
May272015

Find out how ACA affects Employers with fewer than 50 Employees

Most employers have fewer than 50 full-time employees or full-time equivalent employees and are therefore not subject to the Affordable Care Act’s employer shared responsibility provision.

If an employer has fewer than 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is not an ALE for the current calendar year. Therefore, the employer is not subject to the employer shared responsibility provisions or the employer information reporting provisions for the current year. Employers with 50 or fewer employees can purchase health insurance coverage for its employees through the Small Business Health Options Program – better known as the SHOP Marketplace.

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