U.S. Set to Hit Debt Ceiling Within Four Months, Congressional Budget Office Estimates

The federal government is on track to reach the statutory debt limit in the fall, which would trigger a government shutdown, according to a Congressional Budget Office (CBO) estimate.

The U.S. is projected to reach the debt ceiling of $28.5 trillion by October or November, a CBO report released Wednesday stated. If Capitol Hill lawmakers don’t reach an agreement on raising the limit higher, the government could undergo its third shutdown in less than four years.

“If the debt limit remained unchanged, the ability to borrow using those measures would ultimately be exhausted, and the Treasury would probably run out of cash sometime in the first quarter of the next fiscal year (which begins on October 1, 2021), most likely in October or November,” the CBO report said.

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Over 100 Countries Agree to Back Global Minimum Corporate Tax

A view of the North entrance of the U.S. Treasury Building in Washington D.C.

A total of 130 nations representing more than 90 percent of global GDP have agreed to a global minimum corporate tax, Treasury Secretary Janet Yellen announced Thursday.

The tax, proposed by Yellen and the Biden administration during the G7 conference, would establish a minimum corporate tax rate across all participating countries to prevent corporations from avoiding taxes by incorporating offshore, according to Barron’s. The plan is also intended to prevent countries from competitively lowering their tax rates to attract investment, according to a Treasury Department statement.

“For decades, the United States has participated in a self-defeating international tax competition, lowering our corporate tax rates only to watch other nations lower theirs in response,” Yellen said in the statement.

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Commentary: It is Time to Fight for the Rights of Independent Businesses

As a very young man, I was fortunate enough to start my own company out of my apartment using a small amount of investment capital from friends and family. Over time, that business grew to have over 6,000 employees and revenues in excess of $2 billion. Over nearly a 40-year span, my team and I built what some would consider a remarkable track record, as measured by both sales and profits.

Because of my experience growing that business, I feel a special kinship with small, privately owned businesses and their owners. I also come from a middle-class background, one that shaped me into the person I am today. It is through both the lens of entrepreneur and member of the middle-class that I look through when reflecting upon this Independence Day.

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Commentary: Making Sense of the Post-Pandemic Economy

Guy on phone with stocks on computer screen

Are you having a hard time understanding why the housing market is heating up, and why the cost of essentials such as milk, eggs, and gas is climbing? Are you in the market for a used car? Then you know how expensive those are right now. And why can’t businesses find employees, yet millions remain unemployed? Economists agree the recovery isn’t like anything we’ve seen before. That’s because we’ve never had a situation before where the heavy hand of government shut down private enterprises on a nationwide scale. The market distortions are enormous. As states reopen, there is a herky-jerky feel to the economy that has many people unsettled.

Former Federal Reserve vice chairman Alan Blinder wrote in the Wall Street Journal recently, “the recovery is not linear. Rather, it is proceeding in fits and starts. Sales of physical goods, for example, dipped only briefly when Covid hit, recovered quickly, and are now well above their pre-pandemic levels. In stark contrast, businesses that deliver personal services, such as restaurants and hotels, suffered a devastating depression and are still below their pre-pandemic levels.”

By far the most uneven outcome so far since the economy crashed in spring 2000, besides the 7.6 million fewer jobs compared to pre-pandemic levels, has been inflation, which is up 5 percent the past 12 months.

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Commentary: Tax All Foundations and Endowments Now

Yale University

If there were trillions of dollars socked away in convenient vehicles to avoid taxes and benefit the ultra-elite should we not tax them? Are they not fair game in a just system of taxation, where the little guy and the middle class have to pay up—or else? 

The largest endowments, mainly universities indoctrinating students in social justice, wokeism, and class warfare, pay absolutely no taxes. 

The big foundations, promoting radical left-wing activism, likewise pay no taxes. 

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Commentary: New York and New Jersey Are Among the Top 10 States Where Residents Pay the Highest Lifetime Taxes

Tax withholding forms

In the mood for a depressing statistic? A new report from the financial services firm Self concludes that the average American will pay an astounding $525,037 in taxes over their lifetime—roughly 34 percent of their lifetime earnings. 

But the numbers aren’t uniform across the country; they vary wildly from state to state. Based on taxes on earnings, spending, property, and cars, here are the 10 states where residents pay the highest taxes over a lifetime.

1. New Jersey

Topping the list is New Jersey, where residents will, on average, owe an astounding $932,000 in taxes over their lifetime. That’s nearly 50 percent of their typical lifetime earnings!

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Biden Administration Proposes ‘More Realistic’ 15 Percent Global Corporate Tax Rate

President Joe Biden and Vice President Kamala Harris, joined by White House staff, participate in a virtual bilateral meeting with Canadian Prime Minister Justin Trudeau on Tuesday, Feb. 23, 2021, in the Roosevelt Room of the White House. (Official White House Photo by Adam Schultz)

The Biden administration proposed a minimum global corporate tax rate of 15%, but said it hoped world leaders would negotiate a more “ambitious” minimum rate.

Treasury Department officials proposed the 15% minimum corporate tax rate during an Organization for Economic Cooperation and Development (OECD) meeting on taxation Thursday. The meeting marked the initial discussions over a global minimum rate between nations after the Treasury Department had previously pushed for such a tax to stop the global “race to the bottom.”

“Treasury proposed to the Steering Group that the global minimum tax rate should be at least 15%,” the department said in a statement Thursday. “Treasury underscored that 15% is a floor and that discussions should continue to be ambitious and push that rate higher.”

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Commentary: Biden’s Capital Gains Tax Plans Are a Lose-Lose Proposition

There will always be munis. Income from municipal bonds typically enjoys tax-free status at the federal level and in the issuing state. Conversely, when investors put wealth to work in a startup, private corporation, or public company, they face a capital gains tax penalty if their investment bears fruit. If a home run, that penalty becomes enormous.

Imagine that. Investors who subsidize the growth of government largely avoid taxation. But if they back an innovative corporation, or rush a distant future into the present through an intrepid investment with a visionary entrepreneur, a major IRS bill awaits.

Worse, the cost of prescient investing may soon increase. Seemingly in a bid to placate his ravenous left flank, President Biden has announced a proposal to nearly double the federal penalties on savings and investment to 43.8%.

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Commentary: Taxing Workers for Staying Home Is a Policy Rooted in Envy

Ever since the beginning of the pandemic, working from home is the new normal.

In 2018, just 5.4 percent of the US’s working population worked remotely. By mid-2020, it had turned into reality for 56 percent of the workforce. While not all workers forced to stay home were quick to welcome the change, many learned to enjoy it over time. With state governments beginning another round of lockdowns, it isn’t shocking to see many companies choosing to carry on with remote work.

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Hunter Biden Says He’s Being Investigated for Possible Tax Crimes

Federal prosecutors in Delaware are investigating Hunter Biden for potential tax crimes, he said in a statement issued Wednesday through his father’s presidential transition team.

“I learned yesterday for the first time that the U.S. Attorney’s Office in Delaware advised my legal counsel, also yesterday, that they are investigating my tax affairs,” Biden said in the statement.

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Biden Pledges to Hike Taxes to Bush Administration Levels

President-elect Joe Biden in a Wednesday interview said “there’s no reason why” his administration shouldn’t raise both corporate and individual income taxes to levels maintained during former president George Bush’s administration.

Biden insisted “everybody pairs their fair share” in taxes during his presidency, and suggested a nearly 40% rate for those in the top bracket, which he said was commonplace during the Bush era, in an interview with the New York Times.

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Biden’s Gun Registration Tax Could Cost Firearms Owners Billions

President-elect Joe Biden’s proposed firearm tax could cost gun owners upwards of $30 billion to keep the weapons they already possess, according to The Washington Free Beacon.

Biden plans to mandate both taxation and registration of so-called “assault weapons” and high-capacity magazines under the National Firearms Act (NFA), which requires a $200 fee per item, according to the former vice president’s campaign website. Around 20 million rifles and 150 million magazines would be taxable, leading to a total cost to U.S. gun owners of over $34 billion, according to the Free Beacon.

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Court Ruling Allows Ohio Small Businesses to File Single Local Tax Return

An Ohio Supreme Court ruling should help small business owners cut through government bureaucracy and save time and money, according to a Central Ohio think tank.

The ruling, which could allow small businesses to file a single local income tax return, is a step in the right direction for small businesses throughout the state, according Greg R. Lawson, a research fellow at The Buckeye Institute.

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Reports: Biden’s Tax Plan Would Increase Taxes Across the Board, Estimates Vary by How Much

Democratic presidential candidate Joe Biden’s proposed tax increases of nearly $4 trillion over the next 10 years, if passed, “would be the highest in American history – indeed, in world history,” an analysis of his plan determined.

Lew Uhler, founder and chairman of the National Tax Limitation Committee and National Tax Limitation Foundation (NTLF), and Peter Ferrara a senior policy adviser to NTLF, made that conclusion in a new report published by The Hill.

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Commentary: Tariff Hawks Got It All Wrong When They Predicted ‘Another Great Depression’ from Trump’s America-First Trade Policies

Donald Trump

by Robert Romano   In 2016, when President Donald Trump ran on his America first trade agenda, much of the conventional wisdom was that, if implemented, his tariffs would wreck the U.S. economy. It would have the same impact as the 1930 Smoot-Hawley Act, and so the prediction goes, lead to…

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Federal Regulations Amount to a $15,000 ‘Hidden Tax’ on Families, Report Finds

by Michael Bastasch   The federal regulatory apparatus imposed a roughly $14,600 “hidden tax” on American households last year, according to a new report by the Competitive Enterprise Institute (CEI). “That amounts to 20 percent of the average pretax income of $73,573, and 24 percent of the average expenditure budget…

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Conference Committees Meet to Hash Out Tax, Spending Increases in Minnesota Budgets

by Bethany Blankley   With 17 days to go before the end of session, legislative conference committees began meeting Friday to hash out differing proposals for three of the most contentious omnibus bills yet to be voted on by the full Legislature. The Omnibus tax bill, Omnibus Health and Human Services…

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Lawmakers Eye a Huge Backdoor Spending Increase

US Capitol

by David Ditch   Members of Congress are promoting the concept of changing three programs from the discretionary category (requiring annual appropriations) into mandatory (auto-pilot) spending. Such changes would become a huge backdoor spending increase. Spending limits have come under relentless attack from both parties. In 2013, 2015, and 2018,…

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Ohio Joint Legislative Committee Fails to Reach Compromise on Gas Tax Hike

Thursday’s joint committee meeting to find a compromise on the controversial gas tax hike appears to have ended inconclusively. As previously reported, the gas tax hike has proved an extremely divisive start to the legislative calendar.  Currently, House Bill 62 (HB 62), the 2020-21 Ohio Transportation Budget, the first major bill…

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Buckeye Institute Blasts Tax Hike, Warns Legislators: ‘Don’t Increase the Tax Burden on Ohioans!’

A joint committee of the Ohio House of Representatives and Senate was convened Wednesday in the hopes of reconciling the major divides in their respective transportation budgets. As they work towards a solution, one state think tank is reminding them not to forget the consequences Ohio citizens will face as a result…

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Former California GOP Chairman Lists Nine Ways America Is Moving Towards Socialism

by Nick Givas   Former California GOP Chairman Tom Del Beccaro listed nine ways in which America is moving towards socialism during an appearance on “Fox & Friends” Monday. Del Beccaro said increased government spending and inflated tax codes are just the beginning and claimed they’ll have a domino effect on…

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Rick Manning Commentary: President Trump Versus Washington’s Spending and the Constituencies Who Fight for Them

by Rick Manning   In Washington, D.C., every spending program and tax break has a constituency that fights for it.  This is why they exist, because somewhere, someone believes that Warren Buffett needs a wind production tax credit, and that opera programming should be taxpayer funded. These constituencies are tightly…

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Americans for Tax Reform Urges Ohio to Reject ‘Straight-Up’ Gas Tax Increase

Grover Norquist, President and Founder of the nationally recognized Conservative taxpayer advocacy group Americans for Tax Reform (ATR), implored Ohioans Friday to reject the “straight up” gas tax currently being considered by the Ohio Legislature. In an open letter, Norquist warned; A gas tax hike does the greatest harm to households who…

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Federalism Committee Chair John Becker Gauges Gas Tax as Ohio Statehouse Battle Ignites

COLUMBUS, Ohio — The battle over a gas tax increase has officially kicked off in the Ohio Statehouse. Since taking office, Ohio Republican Gov. Mike DeWine has insisted that a gas tax was critically necessary to preserving and repairing the state’s decaying roads and bridges. Though many in the state on both…

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Columbus Democratic Mayor Backs Governor DeWine’s Gas Tax

COLUMBUS, Ohio– In a statement made via a Facebook Video, Columbus, Ohio’s Democratic Mayor Andrew J. Ginther announced that he is backing DeWine’s 18 cent gas tax hike. The mayor said he is backing the bill because: It will help us increase our funding for infrastructure in Columbus neighborhoods by 19 million a year.…

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Report: Returning State Tax Surplus to Ohioans Could Create 2,100 New Jobs

The Buckeye Institute, an established think tank based in Ohio, has released its latest economic report, assessing the current state of economic affairs in Ohio and making recommendations to improve the overall financial health of the state. In the report, The Buckeye Institute discovered that the current state budget surplus could create…

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Governor’s Committee on Road Repair Issues Report: Gas Tax Hike for Ohio

Ohio Gov. Mike DeWine’s hand-picked Advisory Committee on Transportation has issued its final report on how best to address the deteriorating condition of Ohio’s roads and bridges. As early reports suggested, a gas tax hike is their only solution. The 15 member panel agreed that raising taxes on the price of…

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Governor DeWine Accelerates Gas Tax Planning with No Limits Set

It’s safe to say that when Ohio Governor Mike DeWine appointed his “Governor’s Advisory Committee on Transportation” to develop solutions for paying for road and bridge repairs, citizens were hoping they’d come up was some creative answers. Instead, the committee reached a consensus last week that the primary means by which…

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DeWine Appointed Committee Recommends Gas Tax Hike for Ohio

After two meetings and two hours of public testimony, the Governor’s Advisory Committee on Transportation has, so far, agreed on only one thing to save Ohio’s roads and bridges: raise taxes. As previously reported, the committee was officially launched on January 31st. Hand-picked by Governor Mike DeWine, the bipartisan committee of industry…

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Macron Bails on Climate Summit as France Melts Down Over High Gas Taxes

by Chris White   French President Emmanuel Macron made his way back to France Sunday as protesters turn the streets of Paris upside down over sky-high gas taxes designed to fight global warming. Officials are considering declaring a state of emergency to deal with the unrest. Macron returned from his trip in…

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How the 1851 Center for Constitutional Law Chose Its Name and Why It Matters to Ohioans

Maurice Thompson

Ohio entered the Union in 1803 as America’s 17th state and — as has been routine practice for freshly-added states — Ohio established a state constitution by which to govern itself in harmony with the U.S. Constitution.  For decades, things generally seemed to function well. But by 1851, Ohioans began…

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House Votes Overwhelmingly To Kill Obamacare’s Tax On Medical Devices

Obamacare

by Julia Cohen   A bipartisan majority in the House voted to repeal President Barack Obama’s 2.3 percent medical device tax Tuesday. The repeal passed 283-132, with 57 Democrats and all but one Republican voting in favor. North Carolina Republican Rep. Walter Jones was the sole Republican against the bill. “Minnesota’s innovators can breathe…

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Republicans Unveil Tax Cuts Round Two On The Same Day Progressives Release Plan For Tax Increases

Steve Scalise

by Julia Cohen   House Republicans announced they are working on a second iteration of tax cuts on Tuesday, the same day the Congressional Progressive Caucus announced a proposal for raising taxes. “The tax cuts have been working incredibly well to get this economy moving, to create more jobs, to…

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Just Facts Think Tank President: The True Effects of Regulations on the Economy

by James D. Agresti   In a New York Times article about President Trump scaling back regulations, reporters Binyamin Appelbaum and Jim Tankersley report “there is little historical evidence tying regulation levels to” economic growth. They support this sweeping claim only with a quote from Jared Bernstein, a former chief economic adviser to…

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