The Heartland Institute

The California Supreme Court has given a victory to taxpayers in its unanimous ruling that the City of Long Beach must recognize class claims to refund illegally collected telephone taxes. McWilliams v. City of Long Beach revolved around the city’s refusal to refund the tax except to individual taxpayers who demanded their ...

In Dostoevsky’s “The Brothers Karamazov,” a priest recalls the words of a man who confessed, “The more I love mankind in general, the less I love people in particular.” We can all think of people like that—folks of varied political persuasions who rally to “save” humanity but become so consumed by their cause that they lose ...

According to Governing magazine, there were 28 public bankruptcies in 2011 and 2012. Although that number fell short of many experts’ predictions, it still represents a significant increase in defaults. Of the dozens of cities considering bankruptcy, Stockton, California is the largest and has received the most attention. A recent ...

When people follow rules, they don’t expect to be penalized years later for having done so. But that’s what’s happening in California, where state tax officials have decided to retroactively apply taxes that small business owners and investors were told they would not have to pay. The Franchise Tax Board’s move “has the potential ...

California voters have approved measures to raise taxes by billions of dollars and rejected a measure to stop labor unions from forcing members to pay dues for union-backed political activities. Proposition 30, successfully championed by Gov. Jerry Brown (D), will raise California’s sales tax a quarter-cent on the dollar for ...

As Congress decides whether to allow the national capital gains tax rate to increase at the beginning of next year, states across the country are debating whether to change their own capital gains taxes. These are taxes paid by individuals and corporations on their capital gains, or profits realized when investors sell a capital ...

The United States has the highest corporate tax rate among the 34 nations in the Organisation for Economic Co-Operation and Development (OECD) in addition to being one of the few nations still using a “worldwide system.” These are two reasons the United States is in dire need of fundamental corporate tax reform. Under the ...

Tax increment financing has become a popular tool for encouraging economic development in municipalities across the country. Originally designed to help blighted areas attract businesses, tax increment financing, or “TIF,” has quickly become the subsidy of choice for towns seeking to spur development. TIF allows municipalities to ...

Since the 2007-2008 financial crisis, legislators in the United States and across the world have proposed new taxes on certain financial transactions, including securities trading and stock transactions. For proponents of these financial transaction taxes the goal is twofold: to raise revenue for the national governments through ...

This Taxpayer Risk Assessment examines the financial risks to taxpayers of the proposed XpressWest high-spreed rail project from Victorville to Las Vegas. There would be no need for a Taxpayer Risk Analysis without government (taxpayer) involvement. For example, if a bus company were to establish a new service between Victorville ...

Few taxes imposed by state and local governments are more controversial than the estate tax, popularly referred to as the “death tax.” Estate taxes are levies on property transferred from a deceased person’s estate to relatives or other parties. The estate tax rate is scheduled to automatically increase, and the amount excluded ...

With the nation’s economy still in the doldrums, unemployment compensation funds in many states have become insolvent. One reason is that waste and fraud plague the system. In some states nearly 20 percent of all benefit payments result from error or fraud, according to the National Center for Policy Analysis. A July 2012 ...

The “digital divide” is a term that has been used to characterize a gap between “information haves and have-nots,” or in other words, between those Americans who use or have access to telecommunications and information technologies and those who do not. One important subset of the digital divide debate concerns high-speed Internet ...

Corporate Income Taxes Problem All 50 states currently have a higher combined federal and state corporate tax rate than France, whose rate is third-highest among OECD countries 1. Although corporate income taxes make up a fairly minor part of state tax revenue, they have a harmful impact on economic behavior. Nonetheless, many ...

In states and municipalities across the country, the high cost of traditional defined-benefit public pensions has become a hot-button issue as unfunded liabilities have raced out of control. These increasing liabilities are further complicated by the fact that in many instances the regulators controlling pension funds have overestimated ...

Myth 1: A tax on Internet sales just enables states to collect taxes they are already legally entitled to collect. Fact: A state is not legally entitled to collect taxes from Internet sellers with no physical presence in that state. In Quill Corp. v. North Dakota, the U.S. Supreme Court ruled in 1992 that a mail-order or ...

(An updated verison of this policy document can be found here ) Motor fuel taxes affect everyone who uses any kind of transportation. These taxes, which are paid as an excise duty – a tax on the sale of motor fuel – increase the cost of transportation for individuals. They are designed by most national and state governments ...

Problem States across the country continue to struggle with balancing their budgets as a result of increasing spending and a lagging economy. Many states also have accumulated massive amounts of debt that taxpayers will have to pay due to years of overspending combined with state employee pensions and benefits. Thirty-one states ...

In the wake of the recent financial crisis, several commentators have suggested a transaction tax on financial markets. The potential consequences of such a tax could be hazardous to the financial markets affected as well as to the economy. In this paper, we review the relevant theoretical and empirical literature and apply ...

The results of a ballot measure that would raise California’s cigarette tax from 87 cents to $1.87 a pack are too close to call. After 100 percent of precincts reported 50.4 percent opposed versus 49.6 percent in favor, the final tally won’t be released until hundreds of thousands of mailed-in, dropped-off, and provisional ...