It kind of was overshadowed by yesterday's Super Bowl, but Sunday, Feb. 3, was a big day in the tax world. It marked the 100th birthday of the modern tax code. Actually, it was the day 100 years ago that the 16th Amendment, the one that authorized the federal income tax as we know it, was approved by Delaware.
COMMENTARY | Gov. Bob McDonnell of Virginia is proposing legislation that would repeal the current gas tax and replace lost revenue with an increase in the state's sales tax, from 5 percent to 5.8 percent. Because of the changing way Americans use fuel, be it with alternative fuel or fuel-efficient vehicles, the revenue associated with the fuel tax is beginning to stagnate, according to figures from the Tax Policy Center. Revenue from this legislation would provide much-needed funds for further construction and repair of the state's transportation infrastructure.
President Barack Obama is asking Congress for a short-term deficit-reduction package of spending cuts and tax revenue that will delay the effective date of steeper automatic cuts scheduled to kick in March 1. Obama said the cuts would be economically damaging and must be avoided. The president reiterated his insistence on long-term deficit reduction that combines taxes and cuts, a blend that faces stiff resistance from antitax Republicans in Congress.
For almost two decades, California has provided a hefty tax break for residents owning shares of small businesses that keep most of their workers and assets in the state.
The sequester debate is yet another battle over taxes. Urging Congress to avoid the automatic series of budget cuts, President Obama called Tuesday for a short-term debt reduction plan that includes new tax revenues -- not higher income tax rates, but elimination of loopholes and deductions.