The Deduction

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 Outdated technology, millions of unanswered calls, and cafeterias full of paper returns--it's clear that America’s tax collector needs improvement.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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The House of Representatives is set to pass the Inflation Reduction Act, the latest iteration of President Biden’s tax and climate agenda.

The road to get to this final package has been anything but easy--with congressional Democrats drastically scaling back the initial $3 trillion Build Back Better agenda.

Garrett Watson joins Jesse to discuss what sacrifices were made by key lawmakers to bring this bill to the finish line. They also look at what the economic impact of this proposal would be as the country continues to face historic rates of inflation.

Links:
https://taxfoundation.org/inflation-reduction-act/
https://taxfoundation.org/tax-on-stock-buybacks/
https://taxfoundation.org/inflation-reduction-act-accelerated-depreciation/
https://taxfoundation.org/inflation-reduction-act-corporate-taxes/
https://taxfoundation.org/book-minimum-tax-analysis/

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After months of stalled negotiations, Sen. Joe Manchin (D-WV) announced that he has reached a deal with Senate Democrat leadership on a reconciliation package.

Called the Inflation Reduction Act, the legislation would raise taxes on corporations and top earners with the goal of funding a number of programs to reduce carbon emissions, address prescription drug costs, and spur the economy.

Garrett Watson joins Jesse Solis to talk through what these tax changes would mean for the economy: Will they reduce inflation, and do they break the President's pledge not to raise taxes on those earning less than $400,000?

Links:
https://taxfoundation.org/biden-corporate-minimum-book-tax/
https://taxfoundation.org/prescription-drug-pricing-reform/
https://taxfoundation.org/tax-gap/
https://taxfoundation.org/tax-reform-options/?option=28

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Technology is moving rapidly--especially when it comes to taxes. With advancements in AI and machine learning, we are seeing technology being utilized in every corner of the tax world.

From policy to filing, from accounting to compliance: technology is truly shaping the future of taxes. Jesse chats with Ben Alarie, CEO of Blue J, and Garrett Watson, Senior Policy Analyst at the Tax Foundation, about how companies are utilizing technology to comply with new innovations in the tax code and how policymakers can use technology to advance tax laws that support an ever-evolving economy.

Links: https://www.bluej.com/
https://taxfoundation.org/overview-tax-foundations-taxes-growth-model/ 

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On July 1st, 2021, over 130 countries agreed to a sweeping overhaul of the global tax system.

This agreement -- on a 15% global minimum tax -- was unprecedented, taking on over a century of how international tax competition has been done.

One year later, the deal appears stuck. Countries are moving ahead with caution before codifying this new tax into their laws.

Daniel Bunn, Tax Foundation's executive vice president, joins Jesse to discuss what this delay means for countries and multinational corporations, and what the path ahead looks like for global tax policy and competition.

Intro: 00:02
Overview: 01:15
Myths and Misconceptions: 12:54
Key Takeaways: 15:45
Outro: 17:50

Links: https://taxfoundation.org/global-minimum-tax-us-international-tax/

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Oil prices have skyrocketed, posing a new risk to the post-pandemic recovery. Feeling the pressure to respond, policymakers have proposed everything from gas tax holidays, tapping into strategic reserves, and even rebate cards. One idea that has crawled back from the dead: “Windfall Profits Taxes.”

This idea is seemingly simple: legislation targeted at the “excess” profits of oil companies. However, as with anything in tax policy, the reality is much more complicated.

But why exactly have windfall profits taxes risen from the grave, and what put them there in the first place? Host Jesse Solis sits down with Tax Foundation policy analyst Alex Muresianu to find out more.

Links: https://taxfoundation.org/windfall-profits-tax-oil-company-profits/

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Amidst soaring inflation, policymakers across the political spectrum proposed many ideas to soften the blow of higher prices—especially for low-income workers and families.

One idea that caught on quickly: sales tax relief on groceries.

The idea had its merits, but Tax Foundation research shows that it may have missed the mark. Tax Foundation Vice President of State Projects Jared Walczak joins Jesse Solis to discuss how grocery sales tax relief became a popular idea, and why it is so hard to nail down progressive vs. regressive tax policy.

Links: https://taxfoundation.org/sales-tax-grocery-tax-exemptions/

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Property taxes are one of the most substantial tax burdens businesses face. In 2020 alone, property taxes accounted for almost 38 percent of all taxes paid by businesses to state and local governments.

These taxes are highly unpopular and can get extremely confusing. But when done right, property taxes can actually be quite good. Janelle Fritts, a state tax policy analyst, joins Jesse Solis to talk through what a well structured property tax should look like, which states have good property tax structures in place and which ones don't, and how these taxes impact a state's competitiveness in an increasingly mobile economy.

Links:
https://taxfoundation.org/ranking-property-taxes-2022/
https://taxfoundation.org/2022-state-business-tax-climate-index/
https://taxfoundation.org/tax-basics/property-tax/

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Amidst bipartisan climate negotiations on Capitol Hill, there have been renewed calls for a carbon tax.

Carbon taxes have long been magnets for political controversy. But from an economic standpoint, they deserve to be taken seriously.

Federal policy analyst Alex Muresianu joins Jesse Solis this week to talk through the history of climate tax policy, how a pro-growth carbon tax could be designed, and what its chances in DC actually are as the climate crisis worsens.

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