Five questions about Trump’s made-in-America corporate tax rate. Republican presidential nominee Donald Trump recently proposed cutting the current 21 percent corporate tax rate to 15 percent, but only for domestic production. TPC staff suggest some issues to consider.  

Hyper-targeted tax breaks are a troubling campaign trend. TPC’s Howard Gleckman reviews the level of specificity in tax subsidies promoted by both Republican presidential nominee Donald Trump and Democratic presidential nominee Kamala Harris. Such targeting may be politically popular, but it also makes the tax code less fair and less efficient. 

Maryland joins IRS Direct File. State Comptroller Brooke Lierman said last week that an estimated 700,000 state residents could qualify for the IRS’s free online tax filing program. The IRS piloted the program in 12 states earlier this year and announced its plans to make the service permanent in 2025. 

New York legislature to consider a tax credit for families with children. Newly amended legislation in the state would establish a tax credit for families with children through age 17, reports TaxNotes (paywall). It would have income phaseouts similar to tax breaks like the Earned Income Tax Credit (EITC). The credit would be distributed through quarterly payments and would not be considered income for the purposes of determining benefits eligibility.  

Alabama’s grocery sales tax cut has a smaller-than-expected impact on the state budget. The Legislative Services Agency’s Fiscal Division’s deputy director noted that when the grocery sales tax cut was proposed, the estimated impact on the state’s Education Trust Fund was $152 million in the first year. That impact will likely be closer to $124 million.  

Mississippi’s August tax collections slightly higher than estimated. The Mississippi Joint Legislative Budget Committee reports that total general fund revenue collections in August 2024 totaled $548 million, 5 percent over estimates and 3.76 percent higher than collections in August 2023.  

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