The Consequences of Wynne and a Proposed Congressional Response

2016 ◽  
Vol 14 (2) ◽  
pp. 1-25
Author(s):  
Nancy B. Nichols ◽  
Blaise M. Sonnier
Keyword(s):  
Internal Consistency ◽  
Income Tax ◽  
Income Taxes ◽  
Consistency Test ◽  
Individual Income ◽  
Commerce Clause ◽  
Tax Regimes ◽  
State And Local ◽  
The Impact ◽  
The U.S

ABSTRACT The U.S. Supreme Court's decision in Comptroller of the Treasury of Maryland v. Wynne held that Maryland's individual income tax law violates the Dormant Commerce Clause of the U.S. Constitution because it failed to grant a full credit against both the state and county income tax for income taxes paid to other states. The extension of the Dormant Commerce Clause and the application of the internal consistency test to individual income taxes may lead to taxpayer challenges in other states with individual income taxes. We identify four possible tax regimes that meet the internal consistency test under Wynne and provide an example of the impact of each regime on state and local government revenue in both the resident and nonresident state. We then review current state and local tax regimes, focusing on the 14 states with local income taxes and those that do not grant a tax credit for out-of-state local taxes paid by residents. We evaluate whether those tax regimes may be subject to challenge based on the Wynne decision. Finally, we suggest three policy options that Congress should consider to lessen the budgetary impact of Wynne on county and municipal governments and to allocate the cost of government based on income.

A STUDY OF THE IMPACT OF SPECIAL INTEREST GROUPS ON MAJOR TAX REFORM: AGRICULTURE AND THE 1913 INCOME TAX LAW

2008 ◽  
Vol 35 (2) ◽  
pp. 71-100 ◽  
Author(s):  
Douglas K. Barney ◽  
Tonya K. Flesher
Keyword(s):  
Quantitative Analysis ◽  
Income Tax ◽  
Income Taxes ◽  
Tax Law ◽  
Special Interest Groups ◽  
Congressional Debates ◽  
Farm Population ◽  
Income Tax Law ◽  
State Income ◽  
The Impact

Farmers have benefited from unique tax treatment since the beginning of the income tax law. This paper explores agricultural influences on the passage of the income tax in 1913, using both qualitative and quantitative analysis. The results show that agricultural interests were influential in the development and passage of tax/tariff laws. The percentage of congressmen with agricultural ties explains the strong affection for agriculture. Discussion in congressional debates and in agricultural journals was passionate and patriotic in support of equity for farmers. The quantitative analysis reveals that the percentage farm population was a significant predictor of passage of the 16th Amendment by the states and of adoption of state income taxes in the 20th century.

scholarly journals The Impact of Federal and State Income Tax Liabilities on Timber Investments in the Midwest and Northeast

2007 ◽  
Vol 24 (4) ◽  
pp. 245-251 ◽  
Author(s):  
Nathan R. Smith ◽  
Philip Bailey ◽  
Harry Haney ◽  
Debra Salbador ◽  
John Greene
Keyword(s):  
Income Tax ◽  
Tax Planning ◽  
Income Taxes ◽  
Forest Landowners ◽  
Middle Income ◽  
State Tax ◽  
State Income Tax ◽  
State Income ◽  
Lower Peninsula ◽  
The Impact

Abstract Federal and state income taxes are calculated for hypothetical forest landowners in two income brackets across 23 states in the Midwest and Northeast to illustrate the effects of differential state tax treatment. The income tax liability is calculated in a year in which the timber owners harvest $200,000 worth of timber. State income taxes ranged from highs of $13,427 for middle-income landowners and $18,527 for high-income landowners in Maine to no tax burden in New Hampshire and South Dakota. Calculated state and federal income taxes are based on 2004 tax regulations and rates. After-tax land expectation values calculated for a forest landowner in the Northern Lower Peninsula of Michigan illustrate the importance of tax planning on returns to a timber investment. The results support the need for adequate tax accounting.

scholarly journals The Impact of Federal and State Income Tax Liabilities on Timber Investments in the West

2008 ◽  
Vol 23 (2) ◽  
pp. 121-126
Author(s):  
Nathan R. Smith ◽  
Phillip Bailey ◽  
Harry Haney ◽  
Debra Salbador ◽  
John Greene
Keyword(s):  
Income Tax ◽  
Tax Planning ◽  
Income Taxes ◽  
The West ◽  
Forest Landowners ◽  
Middle Income ◽  
State Tax ◽  
State Income Tax ◽  
State Income ◽  
The Impact

Abstract Federal and state income taxes are calculated for hypothetical forest landowners in two income brackets across 13 states in the West to illustrate the effects of differential state tax treatment. The income tax liability is calculated in a year in which the timber owners harvest $200,000 worth of timber. State income taxes range from highs of $19,693 for middle-income and $34,993 for high-income landowners in Oregon to no income tax in Alaska, Nevada, Washington and Wyoming. After-tax land expectation values for a forest landowner in Oregon are also calculated to illustrate the importance of tax planning on returns to a timber investment. The need for adequate tax accounting is supported by the results.

scholarly journals Impact of the 2020 Pandemic on Revenue from Various Taxes in the Russian Regions

2001 ◽  
Vol 14 (7) ◽  
pp. 987-997
Author(s):  
Marina Yu. Malkina ◽  
Keyword(s):  
Distribution System ◽  
Income Tax ◽  
Negative Impact ◽  
Linear Time ◽  
Russian Regions ◽  
Positive Role ◽  
Tax Revenues ◽  
Tax Regimes ◽  
Regional Budgets ◽  
The Impact

The article investigates the impact of the 2020 pandemic on tax revenues of Russian regions at the stages of their collection and allocation to regional budgets. To exclude the influence of the seasonal component and uneven receipts of various taxes to the budget, the moving annual tax revenues were calculated with a shift of one month. Based on these data for 2013-March 2020, linear time regressions were built and decomposed into 8 taxes and tax groups. These regressions were used to predict non-pandemic tax revenues for different regions in April-December 2020. The impact of the pandemic on the regional tax losses (gains) and their decomposition by sources was calculated through the deviation of the actual revenues from their predicted non-pandemic values on an accrual basis until the end of 2020. We found that the pandemic had led to losses of 13.9 % of total tax revenues in the country and 6.2 % of regional budgets’ own tax revenues. The mining regions are the most affected by the pandemic. On the contrary, in some Far Eastern regions, there is an abnormal increase in tax collections. The largest contribution to the decrease in tax revenues at the consolidated and federal levels was made by the MET receipts; they fell sharply due to lower prices and volumes of oil and gas. However, the negative effect of this decrease at the federal level was dampened by stabilizing VAT receipts. Excise taxes played a positive role in mitigating pandemic risks. The tax distribution system has shown its equalizing function when allocating tax revenues to sub-federal budgets. The largest negative contribution to the change in regional tax revenues during the 2020 pandemic was made by the corporate income tax, while the negative impact of property taxes and special tax regimes turned out to be less significant. Personal income tax has proven to be the main damper of tax revenues at the regional level. The results obtained are applicable to the management of the state fiscal revenues during pandemic crises

The Effect of Seller Income Taxes on Acquisition Price: Evidence from Purchases of Taxable and Tax-Exempt Hospitals

2004 ◽  
Vol 26 (2) ◽  
pp. 1-21 ◽  
Author(s):  
Dan S. Dhaliwal ◽  
Merle M. Erickson ◽  
Shane Heitzman
Keyword(s):  
Income Tax ◽  
Income Taxes ◽  
For Profit ◽  
Primary Difference ◽  
Tax Exempt ◽  
Tax Status ◽  
Lock In Effect ◽  
Lock In ◽  
The Impact ◽  
Acquisition Price

This paper investigates the impact of the seller's tax liability on the price paid in hospital acquisitions. Lock-in theory predicts that for a given asset, asset holders with larger tax liabilities demand a higher price to compensate for income tax liabilities generated on the sale. We apply this theory to a sample of hospital acquisitions by for-profit firms where the primary difference among target hospitals is the seller's tax status—either taxable or tax-exempt. Consistent with the predicted lock-in effect, the evidence indicates that purchase prices are higher when the seller is taxable than when the seller is tax-exempt. Thus, our findings suggest that seller tax liabilities are positively related to purchase prices.

Dis-Incorporation of the American Business Model

2015 ◽  
Vol 14 (1) ◽  
pp. 1-19
Author(s):  
Stewart S. Karlinsky ◽  
Hughlene A. Burton
Keyword(s):  
Income Tax ◽  
The United States ◽  
Income Taxes ◽  
Policy Implications ◽  
American Business ◽  
Payroll Tax ◽  
Individual Income ◽  
Federal Revenue ◽  
Business Entities ◽  
New Strategies

ABSTRACT The U.S. federal government raises most of its revenue from three sources: individual income tax, payroll tax, and corporate income tax. The corporate tax share of total federal revenue has declined dramatically over the last three decades, while tax from individual income has been consistent during the same period. There may be a number of reasons for the decrease in the contribution corporate income taxes make to federal revenues. One of those reasons may be that there has been a dramatic change in how businesses are being organized and operated in the United States. For many years, business entities could choose to operate as either a corporation or a partnership. However, currently, businesses can choose from a variety of entities in which to operate. This article will examine the changes in capital business formations and their impact on the federal revenue collected. In addition, the article will explore the tax policy implications of these new strategies.

The Impact of Corporate Income Tax on Gross Domestic Product - The Case of the Republic of Serbia

2020 ◽  
Vol 58 (3) ◽  
pp. 311-326
Author(s):  
Jadranka Đurović Todorović ◽  
Marina Đorđević ◽  
Marko Krstić
Keyword(s):  
Gross Domestic Product ◽  
Income Tax ◽  
Quantitative Research ◽  
Income Taxes ◽  
Corporate Income Tax ◽  
Domestic Product ◽  
Negative Effect ◽  
The Republic ◽  
The Impact ◽  
Positive Effect

Abstract The importance of certain tax forms for the economy of any country is confirmed by the fact that they can be used to impact on the achievement of fiscal aims as they play a significant role when it comes to their share in a total amount of public revenue of certain countries. Another important characteristic of taxes is that they can affect the trends of gross domestic product (GDP) as one of the most important economic indicators of achieved development of a national economy. It is for this reason that we must point out that the authors will pay special attention to determining the impact that corporate income tax has on trends of gross domestic product in the Republic of Serbia and their interdependency. This will provide an answer to a question whether corporate income taxes have a positive effect on gross domestic product trends and what is its relation with this indicator. On the basis of quantitative research, through the application of regression analysis, the authors will confirm or refute the hypothesis concerning this problem. Finally, we will reach a conclusion which will offer answers to questions related to the impact of this tax type tax on the gross domestic product trends, the extent of the impact and its nature – whether it has a positive or a negative effect on gross domestic product trends in the Republic of Serbia

Sign in / Sign up

Export Citation Format

Share Document