Deep dives into tax policy — the laws, proposals, and reforms shaping the tax code, explained without the jargon.
This week, there’s been a considerable focus on a number of proposed “sin taxes” including those on soda, cosmetic surgery and plastic bags. In theory, sin taxes are meant to prevent certain kinds of behavior – whether or not they accomplish it is a whole other story. I realize that nobody wants to pay extra…
A measure to tax the gross receipts of licensed medical marijuana dispensaries in Oakland passed overwhelmingly on Tuesday. The vote makes Oakland the first city in the US to tax marijuana. The tax was put on the ballot after a considerable push from the medical community. City Council jumped on the bandwagon, too, when it…
When New Jersey Governor Corzine and the legislature were scrambling to find ways to fill the holes in their budget, it was clear that they wanted to utilize “sin” or “vice” taxes as much as possible. Unlike income taxes that affect everyone, sin taxes only affect people who engage in certain behaviors. The behaviors considered…
Last year, while Californians were in the midst of a heated debate on the merits of Prop 8, Charles Merrill took activism into his own hands: he filed papers in Tax Court challenging the Defense of Marriage Act (DOMA). On July 13, the Tax Court ruled that Merrill was not entitled to relief. (Merrill v….
Last year, New York decided to aggressively pursue a sales tax rule already on the books by expanding the definition of venue to include companies with affiliates physically present in the state. Many vendors, Amazon.com included, made a lot of noise about pulling their affiliate program; interestingly, Amazon.com didn’t go anywhere. They did, however, challenge…
The highest-grossing movie of all time is Titanic, which has amassed nearly $2 billion in revenue in just 12 years. The five Harry Potter films, all released within the last 10 years, have grossed nearly $5 billion in revenue. It’s clear that even in an age where there are other distractions – TV, cable, internet…
Taxpayer asks: In your articles about the states, you keep saying that sales tax is regressive. But since everybody is paying the same percent, doesn’t that make it a flat tax which means it’s not regressive? I’m confused. Taxgirl says: Good question! Most sales taxes are flat-rate taxes in that the same percentage is levied…
It’s Fix the Tax Code Friday! Earlier today, I posted a piece on the new ruling in the UK that Pringles, made mostly of things “other than potato” or not, would be considered a snack food that does not meet an exemption for purposes of sales tax/VAT. In many countries, states and municipalities, foods are…
Yesterday, the Lowe’s sale paper arrived at our house. The pictures of healthy plants on the front page convinced me to rush out and buy gardening stuff (granted, it doesn’t usually take much convincing). But instead of heading for the big box of Lowe’s, we went to Greensgrow Nursery, which I joke is my urban…
I received in the post today, almost on cue, a Special Report by the Tax Foundation which reported on, among other things, how folks felt about a tax on sugary drinks. Here are some of their findings: Adults are generally opposed to a tax on sugary drinks (59%). Those with a high school diploma or…