Search results for: pass-thr

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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Tax Conformity Impasse Was Only Partially About Conformity

In the recently concluded legislative session, lawmakers failed to agree on how to conform Minnesota’s tax code to the new federal tax law passed late last year. The Governor and conservative leadership agreed on most of the mechanics of federal tax conformity, with some significant exceptions. Where they did not agree was on how to…

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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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Policy

Policy Archive AllEconomyEducationHealth CareInfrastructure Minnesota in the Middle on Middle-Income Taxes By Jeff Van Wychen | August 8, 2018 | Economy, Taxes Minnesota Earns High Marks for Fiscal Responsibility By Jeff Van Wychen | August 2, 2018 | Economy, Taxes Counterpoint: Progressive policies in Minnesota are working for workers By Katie Hatt | August 1, 2018 |…

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Minnesota Business Taxes Per Worker Below U.S. Average

Conservatives regularly claim that business taxes in Minnesota are high relative to the rest of the nation, but an examination of fiscal year (FY) 2015 total state and local business taxes per private sector employee in each of the fifty states reveals that Minnesota is actually below the national average. Each year, the Quantitative Economics…

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Business Share of Total Minnesota Taxes Below U.S. Average

The share of total Minnesota state and local taxes paid by businesses is comfortably below the national average, according to data compiled by Ernst & Young (EY) contained in a recent report from the Council on State Taxation (COST). In fact, Minnesota is among the bottom ten states in the nation in terms of the…

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A Fresh Take on Business Taxes

Conservatives and many business groups contend that Minnesota business taxes are high relative to other states. Apart from the dubious merit of some of these claims,* they generally do not take into account the level of economic activity that provides the base from which all taxes are paid. For example, businesses might be able to…

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