Browsing Tag

income tax

Research Papers

Paper: How taxes led to the rise of serfdom in ancient Rome

Photo of Roman columns by Joshua Rodriguez on Unsplash

A recent paper by CUNY economics professor Morris Silver looks at how tax considerations evolved into a form a serfdom in ancient Rome.

Although Silver writes about tax systems that are thousands of years removed from our own, many of the systems (and the resulting human responses) should be very familiar to modern audiences. Continue reading “Paper: How taxes led to the rise of serfdom in ancient Rome” »

Federal Income Tax

IRS takes professional golfers to court

Golf photo by Lukáš Opekar via Unsplash.

Spanish golfer Sergio Garcia recently litigated a $1.7 million tax case arising out of a major endorsement contract with TaylorMade, a golf equipment manufacturer.

At issue in the case is how Garcia should characterize the income that he received from the endorsement deal. The income could be classified as personal services, royalties, or a combination of both. (As a Swiss resident, Garcia would only have to pay U.S. taxes on royalty income.)

In a note from this spring’s Tax Lawyer, Georgetown Law student Jay Tymkovich argues that Garcia’s case “exemplifies the convoluted rules surrounding the allocation of income by nonresident alien athletes.”

Tymkovich calls for a standard income allocation for nonresident alien athletes after reviewing Garcia’s tax litigation and a nearly identical case involving a TaylorMade contract with South African golfer Retief Goosen. Continue reading “IRS takes professional golfers to court” »

Federal Income Tax

Report: IRS installment plan hold time was 47 minutes in 2017

Man on phone picture by Photo by freestocks.org on Unsplash

The IRS’ Taxpayer Advocate has released its review of the 2017 filing season (PDF).

While noting that tax filing was relatively hassle-free for those who did not require assistance from the IRS, the Advocate found that “results were mixed” for taxpayers who sought help from the agency. Continue reading “Report: IRS installment plan hold time was 47 minutes in 2017” »

Daily

Brookings: How Income Tax Changes Impacts Economic Growth

Photo of 20 dollars by Vitaly, Sand City, United States - via Unsplash

A report from Brookings: “Effects of Income Tax Changes on Economic Growth.”

Brookings has an interesting white paper about how changes to the individual income tax affect long-term economic growth.

The structure and financing of a tax change are critical to achieving economic growth. Tax rate cuts may encourage individuals to work, save, and invest, but if the tax cuts are not financed by immediate spending cuts, they will likely also result in an increased federal budget deficit, which in the long-term will reduce national saving and raise interest rates.

The net impact on growth is uncertain, but many estimates suggest it is either small or negative.
Continue reading “Brookings: How Income Tax Changes Impacts Economic Growth” »

Daily

Dealbook: Could the State and Local Tax Deduction be on the Chopping Block?

Home / house photo by Drew Coffman via Unsplash.

From The New York TimesTo some, it is a tax on blue-state liberalism. To others, it eliminates a costly perk for the wealthy.

To many taxpayers, however, the federal deduction for state and local taxes is a cherished break that can save them thousands of dollars in double taxation.

President Trump and House Republicans, riding a wave of conservative and populist sentiment, are pushing to end the provision. Yet they must overcome a long tradition and powerful opponents, including Republican and Democratic officials in wealthy, populous states like California, New Jersey, New York and Texas.
Continue reading “Dealbook: Could the State and Local Tax Deduction be on the Chopping Block?” »