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Senate Republican Coronavirus Package Is Undermined by Complexity & Impermanence

The Senate is poised to vote on a coronavirus aid relief package today, which would provide additional funding for individuals, businesses, and states combatting the pandemic. The “Delivering Immediate Relief to America’s Families, Schools, and Small Businesses Act” enters the negotiations as a Senate Republican response to multiple packages proposed by Democrats and Republicans in […]

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Biden’s Plan to Address Offshoring Comes with Contradictions

Today, the Biden campaign is set to release its plans for changing U.S. cross-border tax rules. It includes several proposals with the shared goal of increasing taxes on U.S. multinational companies and attracting new investment to the U.S, although there is a tension between those goals. The campaign’s proposals for higher taxes on U.S. businesses […]

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Economic Recovery and Deductions for Worker Training

Yesterday, Scott Pulsipher and Michael B. Horn wrote on RealClearPolicy.com, “An obstacle to employers investing more in their employees’ education is that Section 127 of the tax code has been frozen in time since 1986.” Section 127 allows employers to provide up to $5,250 annually for worker education costs that can be tax-deductible and excludable […]

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An Overview of the Low-Income Housing Tax Credit

Key Findings The Low-Income Housing Tax Credit (LIHTC) offers developers nonrefundable and transferable tax credits to subsidize the construction and rehabilitation of housing developments that have strict income limits for eligible tenants and their cost of housing. The LIHTC has subsidized over 3 million housing units since it was established in 1986, the largest source […]

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Tax Options to Promote Short-Term Recovery and Long-Term Economic Growth in Wisconsin

Wisconsin, like every state, is experiencing a great deal of economic uncertainty amid the COVID-19 pandemic. States will need to use caution as they make revenue and spending decisions amid the ongoing public health crisis, but tax policy can play a valuable role in a state’s economic recovery, and policymakers ought to give careful consideration […]

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Biden’s Plan to Boost Research and Development Should Include Cancellation of Upcoming R&D Amortization

Last week, former Vice President and presumptive Democratic presidential nominee Joe Biden released a set of economic proposals aimed at increasing investment in research & development (R&D) and “breakthrough” technology in energy. Biden should include canceling the upcoming amortization of R&D expenses in 2022, which would pair well with his plan and remove a headwind […]

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Did 1986 Tax Reform Hurt Affordable Housing?

As Tax Foundation president Scott Hodge wrote in a recent blog post, improving the tax treatment of residential investments is a good way to reduce construction costs and build more affordable housing. Under current law, when a company invests in building a new structure, it must deduct the cost of that investment over multiple decades. […]

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Iowa Decouples from 163(j) and GILTI, Clarifies Non-Taxation of PPP Loans

Iowa’s HF 2614, which passed both chambers of the legislature and now waits for the governor’s signature, makes several changes to the state’s tax code, which, although they will affect revenue, will encourage economic growth and make the state’s tax code more competitive. This bill decouples from GILTI and the net interest limitation and exempts […]

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Improving the Tax Treatment of Residential Buildings Will Stretch Affordable Housing Assistance Dollars Further

A recent Brookings Institution study points out that “even before the COVID-19 crisis, housing affordability and instability were serious problems.” The study outlines a number of goals and strategies for increasing the supply of affordable housing, including federal subsidies, low-cost loans, and grants. These may well be viable solutions, but what is missing are policies […]

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Why Neutral Cost Recovery Is Good for Workers

The COVID-19 pandemic has damaged the American economy, as unemployment has skyrocketed. Despite job growth in May, the unemployment rate still sits at more than 13 percent, its highest point since the Great Depression. But even before the pandemic, American workers had experienced slow wage growth, for a variety of reasons. Policies to create jobs […]