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Abstract:
In recent years, policymakers have put forth several detailed proposals for improving the efficiency and fairness of our income tax system. The most ambitious of these plans contemplate major transformations in how we are taxed on the federal level and give little consideration to the implications for state and local governments. The omission is curious because 41 states and the District of Columbia as well more than 100 cities and counties rely on the personal income tax as a major source of revenue. These jurisdictions derive their tax base in some way from federal tax law, but then modify it to meet individual objectives. This report explores the nature and extent of those modifications, their effect on the individual taxpayer and the part they play in tax reform.

tax reform, federal income taxes, state income taxes, modifications

Abstract:
This report challenges commonly held perceptions of the impact of income taxes on U.S. taxpayers and proposes a new more relevant paradigm. The article traces the history of these taxes from their modest origins in the mid-19th century to the complex, multi-leveled system of today. The author suggests that the current view of the personal income tax, based solely on the regular federal income tax policy, is unrealistic. Other closely related taxes, such as FICA, the alternative minimum tax, and state and local income taxes now have a profound influence on many taxpayers and have become part of a comprehensive system. The report explores the benefits of the new paradigm through a series of simulations that measure tax burden and marginal tax effects for a typical wage earner and a salaries small investor.

Taxation, Personal Income Tax

Abstract:
State and local governments employ differing approaches to taxing consumers on out-of-state purchases. In response Conroy and Tower have created a broad based model that analyzes and evaluates a tax system’s ability to maximize collections. Although their paradigm builds on widely accepted design theories it also relies on information drawn from current practice. Their research findings highlight the influence that various reporting mechanisms have on the effectiveness of consumer use tax programs. The results underscore the model’s value as analytical tool. But as the authors point out, a far more significant contribution could be to add much needed structure to study and discourse on tax design.

use tax, design, SSUTA

Abstract:
Public debate over fundamental changes to our tax laws centers on issues that affect many diverse elements in our society. Tax base design and rate structure are invariably the focal points of the discussion. By its nature the dialogue is far reaching and all encompassing. As the focus shifts to the specifics, the part played by tax credits in the plan takes on paramount importance. For legislators and their constituents change to the credit regime has serious consequences in terms of money and political power. Thus the ultimate success of a comprehensive tax reform proposal rests in a real way on understanding the credit’s place in our income tax system. The author’s survey of federal and state personal income tax credits maps out the details. The profile that emerges underscores the difficult challenges faced by those who believe in comprehensive tax reform as well as the dangers inherent in the present system.

Tax Reform, Credits, Personal Income Tax

Abstract:
Policymakers continue to debate the most appropriate way to tax personal income. Because these taxes are a major revenue source, the strategy adopted has important political implications. Unfortunately public discourse can be clouded by a lack of understanding of rate structure and tax base design. The purpose this report is to identify the defining characteristics and to explore the ways the states link them together. The paper provides an overview of tax rate structures and tax base prototypes and identifies dominant designs. The article then explores the strategic implications of no-tax and low-tax regimes and looks at current issues arising from federal legislation.

Personal Income Tax, Rate Structure, Tax Base Design

Abstract:
Congress has a long history of creating alternatives to the regular income tax. Initially the emphasis was on capital gains, income averaging and the self employment tax. Later legislation expanded the scope to AMT, lump sum distributions, the kiddie tax, IRA distributions and other realms. Most states derive their rate base in some way from the federal model. Consequently they must decide to either incorporate these features of the law or leave them out of the design. Tower, Hinson and Hall explore how these statutes contribute to the complexity of our federal tax system and detail how the states’ responses compound the problem. Remedies exist, and the study results point the way to a workable solution.

Tax Reform, Personal Income Tax

Abstract:
This article reviews alternative minimum tax history and calculates marginal federal tax rates on long term capital gains under the 2002 and 2003 tax law system. In addition 14 state tax rates are assessed for 2003. The authors' results indicate that marginal tax rates for moderately high-income taxpayers are substantially higher than the 20 percent federal statutory rate indicated in 2002 and the 15 percent federal statutory rate i n 20093. State results indicate significant horizontal inequities depending on the rate of state taxation on additional LTCG. This divergence from federal statutory LTCG rates is primarily a result of the phaseout of exemptions and deductions and, most prevalently, the fall into the AMT system.,

alternsative minimium tax, state and local taxation

Abstract:
Charitable checkoffs have become a standard feature of today's personal income tax return. But the increased visibility has brought with it questions about their efficiency and effectiveness. Additional concerns have arisen from the government's expanding role as fundraiser for nonprofit organizations. This report explores the recent growth in those programs and describes how the states structure and administer them. Based on their findings the authors set forth several key policy issues that deserve serious attention.

Taxation, Charitable Contributions, Personal Income Tax

Abstract:
The authors provide an overview of state tax amnesties, saying they are profitable but their long-term effect is unclear. Amnesties might best work during the transition from one tax system to another or preceding major changes in administrative rules, the authors say.

Abstract:
The authors analyze the problems that state taxpayers face as the federal alternative minimum tax changes and some state AMTs change along with it. State legislators may face growing difficulty in justifying the AMT's arcane rules and substantial compliance costs, the authors say.