Reducing “Tax Expenditures” Can Hurt Economic Growth
1062733970 In my last TaxBytes column, I laid out the strange economics of so-called “tax expenditures.” I gave as an example the tax deduction for mortgage interest. That provision leads some people to own rather than rent and others to buy a more expensive house than they would have. Those are bad effects. But, I […]
Italy’s tax on bank profit continues to prove controversial
European bank shares dropped significantly in August after a surprise announcement from the Italian government for a new tax. Stefano Montesi – Corbis | Corbis News | Getty Images Italy’s shock tax on banks continues to prove controversial, even as the government insists it can improve it. Europe’s main bank stock index fell almost 3% […]
OECD tax plan targeting multinationals beset by clashes
The world’s biggest economies are this week attempting to rescue a landmark OECD tax deal after difficulties over implementation threatened to scupper the push to make multinationals pay more tax where they operate. Representatives of more than 130 countries have gathered in the OECD’s Paris headquarters for three days of talks on applying a key […]
State Governments Continue to Cut Income Tax Rates
Although the prospect for taxation at the federal level is dismal, given the huge annual budget deficits of over $1 trillion as far as we can predict, the story at the state level is much different. Here’s an excerpt from David R. Henderson, “Cuts in Income Tax Rates Continue,” TaxBytes, Institute for Policy Innovation, […]
The Public-Choice Dimension of a 2017 Tax Grab
The Supreme Court announced that it will hear an appeal in Moore v. United States. The legal case is certainly more complicated than I can imagine but, in my opinion, the economic or political-economy case is quite straightforward. The tax grab at the source of the case is a one-time “mandatory repatriation tax” under the […]
CEA Deserves an F on Bitcoin Mining Tax Analysis
On May 2, President Biden’s Council of Economic Advisers (CEA) released a statement describing a proposed Digital Asset Mining Excise (DAME) tax. The proposal would impose a tax on cryptomining equal to 30 percent of the electricity used in this activity. In outlining this proposal, the CEA displayed a great deal of ignorance about energy […]
FirstFT: UK Labour leaders meet private equity bosses as party confirms tax plan for sector
Good morning. This article is an on-site version of our FirstFT newsletter. Sign up to our Asia, Europe/Africa or Americas edition to get it sent straight to your inbox every weekday morning UK opposition leader Sir Keir Starmer and shadow chancellor Rachel Reeves have held a series of meetings with private equity bosses to discuss […]
Tax Strike! | AIER
As the deadline to file individual federal income taxes looms, some readers might wonder if they receive sufficient services in return for what they pay. Over the centuries, many Americans have answered that question in the negative, and teamed up with their neighbors to do something about it. The American Revolution was about taxes at […]
UK government expected to offer energy companies windfall tax relief
Britain’s oil and gas companies are next week expected to be offered the prospect of windfall tax relief, as prime minister Rishi Sunak looks to boost investment and improve the country’s energy security. Ministers have been discussing with the sector a promise that the 35 per cent windfall levy on profits would cease to apply […]
Taxes, Tax Cuts, and Economic Growth
As economists will tell you, the world runs on incentives. Human beings act rationally by making choices that have the greatest perceived value given all available outcomes. The history of tax law in America exemplifies this point. In the book Taxes Have Consequences: An Income Tax History of the United States, the well-known economist Arthur […]
