Tax Foundation
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March 21, 2010
What's New?
Federal income tax rates would have to be more than doubled across the income spectrum if Congress were to close the deficit in fiscal year 2010, according to a new report from the nonpartisan Tax Foundation. Instead of taxing joint filers with rates ranging from 10 percent to 35 percent, tax rates would have to start at 24.3 percent and reach up to 84.9 percent.
See Tax Foundation Fiscal Fact, No. 217, "Can Income Tax Hikes Close the Deficit?"
The $1 cigarette tax hike being proposed by some Georgia lawmakers would push cigarette sales out of state or into the black market, according to a new Tax Foundation report.
Read Tax Foundation Fiscal Fact, No. 215, "Georgia Should Refrain from Relying on Smokers to Fill Budget Hole."
A record number of the 142 million tax returns filed in 2008 resulted in no tax payment, according to a Tax Foundation analysis of IRS data. That means the tax filers got back every dollar that had been withheld from their paychecks, and often more. Roughly 51.6 million tax returns, or 36.3 percent, were filed by such "nonpayers," people whose exemptions, deductions and credits wiped out any federal income tax due.
Read Tax Foundation Fiscal Fact, No. 214, "Record Numbers of People Paying No Income Tax; Over 50 Million 'Nonpayers' Include Families Making over $50,000."
As more states consider enacting so-called "Amazon tax" laws to force online retailers to collect sales taxes, a new Tax Foundation report cautions that such policies would not only fail to relieve short-term budget problems but also hurt long-term economic growth.
Click here to read the new report, "Amazon Tax" Laws Signal Business Unfriendliness And Will Worsen Short-Term Budget Problems, Tax Foundation Special Report No. 176, by Tax Counsel Joseph Henchman.
Tax Foundation Economist Kail Padgitt, Ph.D., will address four pieces of legislation being considered by Maryland's House Ways and Means Committee at a hearing scheduled for 1 p.m. today. The bills focus on inflation-adjusted income tax brackets, treatment of retirement income, estate taxes and property tax assessments.
Read the full testimonies here: HB 238, HB 300, HB 312, HB 366.
Pennsylvania Gov. Ed Rendell's $66.4 billion budget contains some sound tax policy reforms, but it also boosts spending and relies on one-time money, out-of-state businesses and the federal government, according to a new Tax Foundation report.
Read Tax Foundation Fiscal Fact, No. 213, "Pennsylvania Governor Proposes Spending Boost, Broader Sales Tax, Heavier Business Taxes."