Posts Tagged ‘TCJA’

Myths of the 2017 Federal Tax Act

The “Tax Cuts and Jobs Act” (TCJA)—the massive federal tax cut passed in December 2017—has failed to produce the benefits touted by its promoters. And if history is any indicator, there is no reason to believe things will change in the future. The following debunks several often-touted claims made by TCJA backers. Myth #1: The…

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Corporate Tax Cuts Increase Income Inequality

North Star would like to thank Professor Louis Johnston of the College of Saint Benedict/Saint John’s University for critiquing earlier drafts of this article.   Conservatives typically argue that the benefit of corporate tax cuts will trickle down to workers in the form of higher wages. New research published this month indicate that workers do…

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The Federal Tax Act’s Minnesota Impact: Steeply Regressive

Corporate elites and wealthy Americans celebrated when Congressional conservatives and President Trump rolled out the so-called “Tax Cuts and Jobs Act” (TCJA) late last year—and with good reason. The TCJA was overwhelmingly regressive, sending a disproportionate share of tax relief to high-income households that have benefited from rising income inequality for decades. Analysis confirms this…

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Generating State Revenue Through Corporate Tax Conformity

The so-called “Tax Cut and Jobs Act” (TCJA) enacted by Congress last year made massive changes to the federal tax code. Minnesota and other states must now decide if and how to conform their own tax codes to the federal changes. As we note in part 1 of this series, the qualified pass-through income tax…

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Federal Tax Act Pass-Through Provision: What a Mess!

Tax laws should be simple and direct. Taxpayers should be able to understand and comply with them without the assistance of an army of attorneys and accountants. The treatment of pass-through income in the new federal tax law passed late last year—the so-called “Tax Cut and Jobs Act” (TCJA)—fails miserably by this standard. Specifically, the…

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2018 February Forecast: Small Change from November

The 2018 February Budget and Economic Forecast released by Minnesota Management & Budget (MMB) today projects a $329 million surplus in the current fiscal year (FY) 2018-19 biennium, a slight reversal from the small deficit anticipated in the November 2017 forecast. However, after adjusting for the effects of inflation—which are largely omitted from the official…

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