November 22, 2008
What's New?
Congressman Jim McCrery, the winner of this year's Tax Foundation Distinguished Service Award, represents Louisiana's 4th Congressional District, encompassing northwest and west central Louisiana, and is serving his tenth and final term in the U.S. House of Representatives. McCrery is the ranking minority member of the House Ways and Means Committee, and also serves on the Joint Committee on Taxation. Tax Foundation President Scott Hodge talks with Congressman McCrery about his accomplishments in tax legislation as well as what we should expect from when it comes to America's economic future.
Listen to the podcast. View list of past recipients of the Tax Foundation Distinguished Service Award.
City transit agencies are on Capitol Hill this week, lobbying for a bailout as they face huge termination penalties from overseas banks due to the collapse of AIG and the unraveling of "Sale In Lease Out" (SILO) deals they entered into from 1988 to 2003.
Last Friday, the Washington, D.C. Metropolitan Area Transit Authority (WMATA) settled with a KBC Group, a Belgian bank that demanded $43 million in termination fee. In Tax Foundation Fiscal Fact No. 153, "Transit Agencies in Bind Due to SILO Deals and AIG Collapse," Tax Foundation Tax Counsel Joseph Henchman explains that the situation is a result of a series of leaseback transactions these agencies conducted. Federal policy first encouraged and then discouraged these SILO deals, and when AIG collapsed, heavy termination penalties kicked in for approximately 30 transit agencies nationwide. These agencies may now face serious financial shortfalls absent the U.S. Treasury Department becoming a guarantor.
Read the full news release. Read the Tax Foundation Fiscal Fact "Transit Agencies in Bind Due to SILO Deals and AIG Collapse."
With the financial crisis and economic slump creating an approximately $4 billion budget shortfall for New York City in FY 2009 and FY 2010, Mayor Michael Bloomberg has proposed $1.5 billion in budget cuts and $1 billion in tax increases.
In Tax Foundation Fiscal Fact No. 155, "NYC May See Higher Income, Sales and Property Taxes," Tax Foundation Staff Economist Josh Barro analyzes the Bloomberg administration's tax package which includes property tax increases by cancelling a $400-per-taxpayer rebate and accelerating a 7 percent rate increase (generating $832 million in revenue), as well as increasing certain fees and fines (generating $123 million in revenue) through the hiring of 234 new traffic enforcement officers and a new five-cent-per-bag fee on disposable plastic shopping bags.
Read Barro's assessment of Mayor Bloomberg's proposal. Click here for information on New York State taxes.
The Tax Foundation will present its Distinguished Service Awards to Congressman Jim McCrery (R - Louisiana 4th District) for his promotion of better tax policy and Congressman Richard Neal (D - Massachusetts 2nd District) for his leadership on international business taxes.
The awards will be presented at the Tax Foundation's Annual Dinner, celebrating the 71st anniversary of their founding, on Thursday, November 20, 2008 at the Four Seasons Hotel, 2800 Pennsylvania Avenue, NW, Washington, DC.
Congressman Jim McCrery represents Louisiana's 4th Congressional District, encompassing northwest and west central Louisiana, and is serving his tenth and final term in the U.S. House of Representatives. McCrery is the ranking minority member of the House Ways and Means Committee, and also serves on the Joint Committee on Taxation. When McCrery served as chairman of the Subcommittee on Select Revenue Measures Subcommittee Chairman, Congressional Quarterly called him an "economic guardian." He has concentrated on producing fundamental tax reform, economic growth and making health care more available and affordable. Former Ways and Means Chairman and Tax Foundation Board Member Bill Archer has called Congressman McCrery "one of the most knowledgeable members of the House on the issue of welfare reform." House leaders twice called on McCrery to serve on conference committees which resulted in the passage of historic welfare reform legislation.
Congressman Neal was first elected to the United States House of Representatives in 1988, and represents Massachusetts' 2nd District which encompasses south central Massachusetts. He serves alongside McCrery as a member of the Ways and Means Committee, and as current chairman of the Subcommittee on Select Revenue Measures. Congressman Neal has led legislative efforts to prevent American companies from moving offshore to avoid paying U.S. taxes. While he has battled offshore tax evasion, Neal has also supported U.S. companies with active business operations overseas by allowing deferral for financing income. Neal continues to lead the effort to repeal the Alternative Minimum Tax (AMT), has sponsored legislation that would increase the national savings rate by encouraging the use of individual retirement accounts, and has worked to make health care and tuition expenses tax deductible for middle-income people.
"Sound tax policy is not, and should never be a partisan issue," said Scott Hodge, president of the Tax Foundation. "Congressmen McCrery and Neal are role models of bipartisan leadership on economic issues."
View Past Recipients of the Tax Foundation's Distinguished Service Awards.
In an effort to provide more information to voters, the Tax Foundation released a new report today summarizing several tax-related ballot initiatives in 23 states, headlined by proposals in Massachusetts to repeal the state income tax outright, a North Dakota measure to reduce personal and corporate income taxes, a Colorado initiative to effectively end "Taxpayer Bill of Rights" (TABOR) spending restrictions, and an Oregon proposal to expand deductibility of federal income taxes.
In Tax Foundation Fiscal Fact No. 154, "Voters Will Consider Tax-Related Ballot Initiatives in 23 States," Tax Foundation Tax Counsel Joseph Henchman provides an overview of tax-related initiatives and summarizes general arguments from proponents and opponents.
"With an election where the media is so focused at the national level, we want to provide voters with state-specific information on ballot initiatives that might affect their pocketbooks and their state's coffers," Henchman says. "The Tax Foundation will be monitoring these proposals before and after the 2008 election."
Read the new Tax Foundation Fiscal Fact. View the Election 2008 Research Area or the State Tax Policy and Data Research Area.
A new Tax Foundation study reports that the Washington Metropolitan Area Transit Authority (WMATA) and other public transportation agencies could soon find themselves in default as the result of government policy on leaseback transactions and the collapse of American Insurance Group (AIG).
In Tax Foundation Fiscal Fact No. 153, "Transit Agencies in Bind Due to SILO Deals and AIG Collapse," Tax Foundation Tax Counsel Joseph Henchman explains that the situation is a result of a series of leaseback transactions these agencies conducted which included heavy termination penalties, federal policy first to encourage and then discourage them, and the collapse of insurer AIG. Now approximately 30 agencies nationwide may face serious financial shortfalls absent action by the U.S. Treasury Department.
Read the Tax Foundation Fiscal Fact. Read the news release.
