How The Senate-Approved Corporate Minimum Tax Works

On Sunday, the Senate passed the Inflation Reduction Act (IRA), following months of negotiations over President Biden’s Build Back Better agenda. To help fund the clean energy provisions, the IRA includes two major new taxes on corporations: a 15% alternative minimum tax and a 1% excise tax on stock buybacks. The new alternative corporate minimum … Read more

Could Crypto Mining Taxes in The US Help Save The Planet, Or Is There an Easier Way?

Carbon emissions are overheating the planet, and Americans are feeling it this summer, with wildfires, heat waves, floods, and droughts. The most significant source of planet-heating carbon emissions is burning fossil fuels for energy. Policymakers looking to curb emissions are turning their attention into cryptocurrency mining (validating cryptocurrency transactions on a blockchain network that stores … Read more

How Much Do Tax-Exempt Organizations Benefit from Tax Exemption on Their Income?

A relatively small number of non-profit organizations where revenues exceed expenses save as much as $21 billion in taxes annually, new research by Nathan Born (a graduate student at Wharton) and I found. Non-profit hospitals enjoyed nearly two-thirds of that tax savings. Income earned by tax-exempt organizations, like 501(c)3 charities, generally is excluded from federal … Read more

Expanding The Net Investment Tax Mostly Would Target Households Making $1 Million or More

Scrambling for a politically acceptable way to raise revenue to pay for a scaled-down social spending and climate bill, Senate Democrats are considering a plan to expand the Net Investment Income Tax (NIIT). Predictably, critics allege the plan would hurt small, family business. But a new Tax Policy Center analysis finds that in 2023 the … Read more

Can Machine Learning Improve Tax Enforcement Without Human Teachers?

When it comes to tax enforcement, I used to believe the Internal Revenue Service could never have too much information. But the agency already collects an incredible amount of information that it underuses or does not use at all. Blame decade-long budget cuts, decades-long underinvestment in technology, and an overly complex tax code. Last year, … Read more

One Strong Global Minimum Tax Beats Two Weak Ones

According to recent news reports, Congressional Democrats are considering watered-down versions of two measures from last year’s Build Back Better Act. The alternative minimum tax on the global book income of large corporations would allow a deduction for current investment expense, and the global intangible low-income (GILTI) reform would continue to allow cross-country pooling of … Read more

What Do The Political Parties Think About A Gas Tax Holiday? It Depends On Who Proposes It

Looking for a case study of our hyper-partisan politics? No need to search any further than your local gas pump. The ongoing debate in Washington and in many state capitols over a gas tax holiday has become a classic example of our toxic partisan politics. When Democrats propose one, Republicans reflexively oppose it. And when … Read more

How Should the US Tax Petroleum Profits?

Ballooning oil company profits have produced a volley of “windfall profit tax” proposals. How well would their different provisions meet the near-term US policy goals of increasing tax revenue from oil profits without deterring domestic production or raising consumer prices? The US currently taxes petroleum production in two main ways: the income tax and an … Read more