The Center for a Free Economy believes that the best tax system is one which is pro-growth and pro-family. The tax base should be focused on consumption, not investment. Tax rates should be low. The tax code should not pick winners and losers. Taxes on capital should not be higher than taxes on labor, as is unfortunately the case today. A pro-family tax policy is not opposed to a pro-growth tax policy.
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By Ryan Ellis In recent weeks, House Democrats have begun to signal how they would govern if given unified control of the federal government. While they will take what they can get from COVID-19 relief bills and conventional extender-type legislation, they have also begun to introduce “shoot for the moon” measures that reveal their unified government ambitions. One area in which this has been crystal clear has been the "Green New Deal," a series of proposals to bring a radical environmental agenda to all areas of our lives. The most straightforward way to conduct a major reform campaign in modern government is through the tax code, and that’s true for both parties. Want to promote school choice? Create a tax credit voucher. Ditto for helping people pay for health insurance premiums, or save for retirement, or afford child care, or invest in new business equipment. The reason is simple: the [...]
By Ryan Ellis The month of July brings with it this year a tidal wave of tax payments owed by employers and families to the IRS and state tax offices. In total, about $1 trillion is scheduled to come out of the economy in July and be sent to federal, state, and local governments. Thankfully, Treasury Secretary Steven Mnuchin has full authority to delay at least the IRS payments until later this year, or even into the early part of 2021. In March, as part of the first wave of emergency COVID-19 relief, the Treasury Department announced in a series of rulings that tax payments owed between March and June would all be shifted into the month of July. This rather sizeable list includes but is not limited to: balances due on 2019 personal income tax returns, estimated tax payments for corporations and small businesses for the first and second quarters of [...]
By Bernie Becker — Conservative and anti-tax groups are on the same page about not forcing people to pay taxes in a couple of weeks, but not as much on whether taxpayers should have to file by mid-July. — More of a trickle? A new analysis found that companies have claimed as little as $5 billion, give or take, in new net operating loss refunds since the phase three coronavirus package became law in late March. WELCOME TO Morning Tax — where, as a fan of the Chicago football team, we have to say that we’ve seen bears look much, much sillier than this while in Wisconsin. (And, of course, much respect to the family who actually got the plastic container off the bear’s head.) How did he know without the special glasses? Today marks 1,508 years since a monk logged a solar eclipse in the Chronicle of Ireland. (Though who knows for sure? [...]
By Colin Wilhelm, Alex Ruoff and Lydia O'Neal Tax incentives could boost medical manufacturing in Puerto Rico Multiple proposals introduced in House since pandemic hit the U.S. Pandemic-induced concerns about the international supply chain for face masks, pharmaceuticals, and other medical supplies are stoking renewed interest in tax incentives to lure manufacturers back to the U.S. Lobbyists and advocates see the next pandemic relief package as a potential vehicle for new tax benefits for pharmaceutical and medical manufacturing companies. Negotiations aren’t expected to pick up again until July, but the conversation so far on this issue has focused on recently introduced House bills that could be included in a relief package. Advocates point to the benefit a tax incentive could have on the economy of Puerto Rico, already a U.S. hub for pharmaceuticals and medical supplies. Supporters also hope the carrot of a tax incentive would preempt a “Buy America” [...]
By Allyson Versprille, Jeffery Leon and Lydia O'Neal Treasury offers extension for tax payments, not filing Tax preparers waiting to see how states react to federal guidance Tax preparers who hoped upcoming tax filing deadlines for individuals and businesses would be delayed due to the new coronavirus were left disappointed by the IRS. The IRS in a notice released Wednesday elaborated on earlier comments from Treasury Secretary Steven Mnuchin that individuals and businesses would be allowed to defer tax payments due April 15 until July 15 without interest and penalties. The tax relief is meant to soften the blow of the Covid-19 pandemic. The guidance contained some new information, including that the tax relief would apply to estimated income tax payments owed by certain taxpayers, such as those who are self-employed. But overall the department stuck to the policies previously laid out by Mnuchin, including the decision to keep the current April 15 [...]
This week, the Center for a Free Economy joined five other free market champions to demand that Congress not give a bailout to renewable energy industries like Big Solar. They made a deal to get rid of their tax breaks, and they should live with that deal. Joining CFE is Americans for Tax Reform, the National Taxpayers Union, Heritage Action for America, Americans for Prosperity, and Freedom Works. Click here to read the letter.