tax

The Fourth of July is next week. On that day, we celebrate the birth of our country. Many of us spend the day being patriotic, going to parades, spending time with friends and family, eating BBQ, and drinking good beer.

Over the past 30 years, lawmakers have turned more and more to the Internal Revenue Service (IRS) instead of traditional government agencies to get social and economic benefits through the tax code. As a result, the IRS now manages 21 refundable and non-refundable tax credits for individuals, such as the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), and about two dozen more tax breaks for corporations, such as the green energy tax credits made possible by the Inflation Reduction Act.

As congressional sessions end in many states, it's clear that 2023 will be the third year in a row with big changes to and relief from state taxes. Since 2021, 24 states have cut individual income tax rates (including 22 cuts to the top marginal rates), 13 states have cut corporate income tax rates, two states have cut sales tax rates, and many more have made structural improvements like getting rid of capital stock taxes, making full expensing permanent, raising the filing and withholding thresholds for nonresidents, improving how businesses treat tangible property, getting rid of throwback and throwout rules, and more.

Economics is all about the value of missed chances.

Some claim that this is not a tax because of definitional difficulties, yet it seems appropriate to term it a tax when government action transfers wealth from a group of people to themselves.

The federal tax code is still a major source of anger and debate among Americans and a barrier to economic growth and opportunity. Other countries, like Estonia, have shown that taxes can be collected in a less stressful and more effective way and still bring in enough money.

In theory, the carbon tax is the most efficient approach to address climate change. In practice, however, the policymaking process can interfere and weaken the policy.

Tax cuts were passed in 43 states in 2021 or 2022, and often in both years. Of these, 21 states cut their income tax rates. It's a very interesting trend that is being driven by strong state revenues and a more competitive tax situation. But many people thought this trend couldn't or shouldn't last until 2023.

As a way to be 'fair,' President Biden wants a wealth tax. It goes against the Constitution and hurts the business.

Political money is unsound money, and while civilization cannot exist without sound money, it can do without predatory government.