Since 2021, 43 states have provided substantial tax relief for taxpayers and businesses. But this year, a new trend has emerged in the opposite direction: a push for states to tax investment.

From coordinated wealth tax proposals to higher capital gains income taxes, some state legislatures are going after high earners.

Jared Walczak, V.P. of State Projects at the Tax Foundation, joins Jesse to discuss how these measures would affect investment, job creation, and migration between states—and why they’re happening now.

Links:
https://taxfoundation.org/state-wealth-tax-proposals/
https://taxfoundation.org/state-population-change-2022/
https://taxfoundation.org/2023-state-tax-changes/

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It’s a new year. And if one thing is certain, it’s that businesses are facing a lot of uncertainty.

Key parts of the Inflation Reduction Act of 2022 are kicking into effect, including the new book minimum tax.

Erica York, senior economist at the Tax Foundation, joins Jesse to discuss why this policy came into the fold. They discuss if this tax will really stop companies from paying zero in taxes, as the president claims, if the new Republican House will revisit this debate, and what the tax's impact will be on jobs and economic growth.

Links:
https://taxfoundation.org/book-minimum-tax-analysis/
https://twitter.com/ericadyork/status/1610328115393216512
https://taxfoundation.org/federal-tax-lame-duck-2022-midterms/
https://taxfoundation.org/warren-corporate-book-tax/
https://taxfoundation.org/companies-paying-no-income-taxes/
https://open.spotify.com/episode/2b6jGfzvyEbFYicob0YuHn?si=ae929bfae71042bb

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When it comes to international economic competition, people often frame the argument as the U.S. versus China.

But across the Atlantic, nation-states in the European Union have been working hard to show the world that they deserve to be considered an economic force.

Rising up to this challenge for the EU is easier said than done. Sean Bray, EU policy analyst at the Tax Foundation, joins Jesse to talk through the EU's challenges--and potential--when it comes to tax and economic policy.

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Tax Foundation recently announced that Daniel Bunn is our new president and CEO. In this special episode of The Deduction¸ Daniel chats with Jesse about how he got into tax policy. They discuss his time in the Senate, his plans for Tax Foundation’s future, and even his obsession with smoking meats.

Links:
https://taxfoundation.org/staff/daniel-bunn/
https://twitter.com/danieldbunn
https://www.linkedin.com/in/danielbunn

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The 2022 midterm elections are wrapping up, and taxpayers are looking at a divided Congress for the next two years. Senior Policy Analyst Garrett Watson sits down with Jesse at Tax Foundation's headquarters to give a quick analysis of what these elections mean for tax policy. They talk through what we can expect from the approaching "lame-duck" session, what a Republican House and Democrat Senate could find agreement on, and what priorities the upcoming Congress should focus on.

Links:
https://taxfoundation.org/tax-extenders-2022/ 
https://taxfoundation.org/tax-cuts-jobs-act-business-tax-increases/

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If you’ve been following taxes closely these past few months, you know that the UK is currently undergoing a drastic change.

This episode of The Deduction is part one in our ongoing coverage of the UK’s tax battles. Jesse chats with Tom Clougherty, research director and head of tax at the Centre for Policy Studies in London. Tom talks us through what all went down in the UK this fall: from the leadership elections to the countless U-turns the new prime minister has made to try and reform the country’s tax code.

Shortly after we finished recording this episode, news broke that Chancellor Kwasi Kwatern was being ousted, and Jeremy Hunt would take over the Exchequer, with the promise that, yet again, another U-turn would happen on the country’s budget.

While this episode doesn’t get into that turn of events, it is still a very informative start showing how we got here and where the country should go on taxes.

A quick British glossary for this episode—“Bugbear”: a cause of obsessive fear, irritation, or loathing.

Links:
https://www.taxfoundation.org/mailbag
https://cps.org.uk/our-team/tom-clougherty/
https://taxfoundation.org/uk-capital-allowances-super-deduction/
https://taxfoundation.org/2022-international-tax-competitiveness-index/

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From the Tax Cuts and Jobs Act in 2017 to the Inflation Reduction Act signed into law just this summer, lawmakers across the political spectrum are often tempted to implement temporary tax reforms.

But is this how tax policy should be done?

Garrett Watson joins Jesse to discuss the pros and cons of writing tax laws that have an end date and why we find ourselves having a debate at the end of each year about so many temporary provisions.

Links:
https://taxfoundation.org/making-the-tax-cuts-and-jobs-act-individual-income-tax-provisions-permanent/
https://taxfoundation.org/economic-growth-opportunity-tax-reforms/
https://taxfoundation.org/temporary-tax-policies-in-budget-reconciliation/
https://taxfoundation.org/cbo-report-us-gdp-budget-deficit/
https://taxfoundation.org/tax-extenders-expiring-tax-provisions-2021/

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Maine has blueberry taxes. Alabama has mosquito taxes. Each state and county has its tax quirks. But when state and local governments want to raise revenues, there are four key taxes they turn to. Depending on where you live, the differences in these taxes between states can be significant. 

Katherine Loughead, senior policy analyst at the Tax Foundation, joins Jesse Solis to discuss trends we are currently seeing in state and local taxes and to break down how stable these revenue sources are for the places we call home.

Links: 
https://taxfoundation.org/state-local-tax-collections/
https://taxfoundation.org/mailbag

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The Inflation Reduction Act, signed into law recently by President Biden, includes a book minimum tax, which is raising the eyebrows of accountants everywhere.

This new policy–a 15 percent tax applied to the financial statement income that companies report to their investors–is one of the law’s largest revenue raisers and joins plenty of other “minimum” taxes for multinational corporations, including GILTI and the OECD global minimum tax.

Scott Dyreng, a professor of accounting at Duke University, and Daniel Bunn, executive vice president at the Tax Foundation, join Jesse to discuss how these minimum taxes work and, more importantly, how the accounting will work as companies aim to comply with all these new complex rules and tax increases.

Links:
https://taxfoundation.org/inflation-reduction-act/
https://taxfoundation.org/book-minimum-tax-analysis/
https://taxfoundation.org/inflation-reduction-act-minimum-tax/
https://taxfoundation.org/inflation-reduction-act-accelerated-depreciation/

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The Internal Revenue Service (IRS) finds itself under fire often. Outdated technology, millions of unanswered calls, and cafeterias full of paper returns--it's clear that America’s tax collector needs improvement.

In the same way that technology has helped shape the tax policy debate, tech also has a role to play in advancing tax administration.

Jesse is joined by Courtney Kay-Decker and Jared Ballew, chair and vice chair (respectively) of the Electronic Tax Administration Advisory Committee (ETAAC). They discuss ETAAC's annual report that lays out what the IRS is doing right, and what it's doing wrong, as the agency continues to see its duties grow. They also discuss the IRS funding in the Inflation Reduction Act, and define what steps the agency and Congress should take in order to truly keep the IRS focused on serving taxpayers.

Links:
https://www.irs.gov/tax-professionals/electronic-tax-administration-advisory-committee-etaac
https://www.irs.gov/pub/irs-pdf/p3415.pdf
https://taxfoundation.org/inflation-reduction-act/
https://taxfoundation.org/tax-season-reform/
https://taxfoundation.org/inflation-reduction-act-irs-funding/
https://taxfoundation.org/tax-gap/

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