Jeff Hoopes, research director of the Kenan Institute-affiliated UNC Tax Center, weighed in as part of The Washington Post’s coverage of the recent ProPublica report on how America’s wealthiest individuals pay little to no income tax.
As we approach the one-year mark of state-issued stay-at-home orders, the short- and long-term impact of the global COVID-19 pandemic on state coffers is still being assessed. With businesses forced to close and unemployment at near-record levels, state policymakers are scrambling to find ways to make up for lost tax revenue. In this Kenan Insight, we look at both the challenges and opportunities for balancing state budgets in light of this new economic reality.
A July 2020 analysis conducted by the Urban Institute estimated states would lose $200 billion in tax revenue through the June 2021 fiscal period due to COVID-19. How states manage this shortfall will impact individuals and businesses. In partnership with the AICPA, our expert panel will share the latest revenue projections and provide insight into actions states are and will be taking to increase revenue.
This April, the UNC Tax Center once again welcomed guests from across the country and around the world to Chapel Hill for our 20th Annual UNC Tax Symposium. The event was a great success, with participants ranging from academic researchers in accounting, finance, law and economics to policymakers and practitioners with an interest in evidence-based tax research.
Many online retail firms (e-tailers) do not collect sales tax from the majority of their customers, providing these firms a potential competitive advantage over traditional retailers. We examine stock market returns and analysts’ sales forecast revisions surrounding federal legislative proposals, such as the Marketplace Fairness Act, that could erode this alleged competitive advantage for e-tailers. Following events that indicated an increased likelihood of federal sales tax legislation, we find negative abnormal stock returns for e-tail firms relative to traditional retail firms. We also find that analysts forecast a future reduction in sales revenue for e-tailers. These findings imply the existence of a competitive advantage for e-tailers, which advantage will potentially diminish with the enactment of federal sales tax legislation.