William G. Gale and Claire Haldeman have published an article on the TaxNotes, titled “Taxing Business: The TCJA and What Comes Next.” The article begins as follows:
Contrary to popular belief, the Boston Tea Party, a cornerstone of America’s founding narrative, was not a protest against British taxation in general. It was a reaction to a corporate tax loophole that protected the interests and market power of the British East India Co.1
Almost 250 years later, Americans are still concerned about unfair business tax rules. In Pew and Gallup polls over the past 15 years, about two-thirds of respondents believe that corporations and high-income households do not pay their fair share of taxes.2 Over the same period, in any given year, about one-third of corporations with assets exceeding $1 billion, and two-thirds of other corporations, paid no federal income tax (Figure 1).3 This includes years before the Tax Cuts and Jobs Act,4 which significantly cut taxes on corporations and passthrough businesses (the vast majority of whose profits accrue to high-income households). Not surprisingly, the TCJA did not improve Americans’ view of tax fairness — poll results continue to hold (Figure 2).5
Click here to see the full article: Taxing Business: The TCJA and What Comes Next
Posted by Josh Saret, Associate Editor, Wealth Strategies Journal.