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Tax Foundation

The Tax Foundation is the nation’s leading independent tax policy research organization. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and local levels.

QB Derek Carr Could Save $3.2 Million In Taxes If Raiders Were Already In Las Vegas

Move over, Andrew Luck: Oakland Raiders quarterback Derek Carr is on track to supplant the Indianapolis Colts quarterback as the highest-paid player in the National Football League by signing a five-year, $125 million contract. That works out to $25 million a year—but, as ESPN’s Adam Schefter has noted, Carr has a strong incentive to backload his contract: state income taxes.… Read more

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Full Expensing Is A Worthwhile Policy, Even If Not All Businesses Like It

It is a poorly-kept secret in Washington, D.C., that a number of large corporations are not particularly fond of full expensing – a policy that features prominently in the House Republican tax reform plan. These corporations sometimes argue that full expensing would not be as conducive to their investment as a simple corporate rate cut, or that it would not be as helpful to their bottom line.… Read more

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How To Reduce The Up-front Cost Of Full Expensing

Last week, we wrote a piece showing that full expensing has significant up-front costs that eventually dissipate. This makes full expensing look much more expensive in the first ten years than it will ultimately cost on an ongoing basis. This is because investments made in previous years under prior depreciation schedules would continue to be written off at the same time as new investment is fully expensed.… Read more

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