Archive: Tax and Fiscal Policy Task Force

  • Resolution in Opposition to Mandatory Unitary Combined Reporting February 26, 2014

    Resolution in Opposition to Mandatory Unitary Combined Reporting Summary Many states have adopted, or are considering adopting, mandatory unitary combined reporting (“MUCR”) into their corporate tax regimes. MUCR may be an aggressive reporting method used to determine state taxable income for a group of affiliated corporations. At its most basic level, MUCR treats a group of affiliated corporations engaged in a “unitary business” as a single taxpayer notwithstanding traditional notions of corporate separateness. This treatment results in taxing income earned outside the state. The main rationale for adopting MUCR is closing perceived corporate tax “loopholes.” However, instead of closing so-called […]

  • Council on Efficient Government Act February 26, 2014

    Council on Efficient Government Act Summary This legislation is designed to create a council on efficient government whose purpose is to ensure that each state agency focuses on its core mission and delivers goods and services effectively and efficiently by leveraging resources and contracting with private sector vendors if those vendors can more effectively and efficiently provide goods and services and reduce the cost of government. Additionally, the council is to evaluate for feasibility, cost effectiveness, and efficiency business cases to be outsourced before a state agency proceeds with any outsourcing of goods or services. Model Policy Section 1. {Title.} […]

  • Statement of Principles on States’ Dependence on Federal Funds January 15, 2014

    Statement of Principles on States’ Dependence on Federal Funds Summary This statement of principles highlights the common practice of relying on federal funds to bolster a state’s general revenue for programs, and encourages legislators to evaluate the risk of an unexpected decrease in federal funding and agencies to prepare contingency plans to continue operations. Statement of Principles States must come to grips with the possibility that federal funding assumed by the state’s budget may decrease or be eliminated as federal budget priorities and tax revenues change.  Without careful planning, states that rely too heavily on federal funds may become unable […]

  • Resolution to Reduce the State’s Dependence on Federal Funds January 15, 2014

    Resolution to Reduce the State’s Dependence on Federal Funds Summary Increasingly, states are relying to a greater degree on federal grants and subsidies to cover programs in the states’ budget.  Gridlock in Congress, however, has put the reliability of those funds in jeopardy, risking the possibility that states may budget for federal funds that never arrive.  In order to ensure the continuation of state programs and minimize disruption in the event of a federal appropriations lapse, states must reduce their dependence on federal funds for day-to-day operations. Model Resolution WHEREAS, the Legislature of the state declares that the nation’s fiscal […]

  • Federal Funds Commission Act January 15, 2014

    Federal Funds Commission Act Summary This bill creates the Federal Funds Commission to study and make recommendations on federal funding in a state’s budget, assess risks of a significant loss of federal funding, and contingency plans for continued services from the state in the event of a reduction of federal assistance. Model Policy {Title, Enacting Clause, etc.}   Section 1. This Act may be cited as the Federal Funds Commission Act. Section 2. {Definitions.}   (A) “Commission” means the {insert state} Federal Funds Commission. Section 3. {Commission Creation and Members.} (A) There is created an advisory commission known as the Federal […]

  • Tax Expenditure Transparency Act October 11, 2013

    Tax Expenditure Transparency Act Summary The legislature finds that the state’s tax code includes tax expenditures enacted to achieve a variety of policy goals for the public interest. The ultimate goal should be for the state’s tax system to reflect sound principles of taxation. In order to make policy choices going forward regarding the best use of limited state resources, the legislature concludes that it is necessary to articulate the legislative intent and have measurable performance goals for each tax expenditure created. Model Policy Short Title. This Act shall be known and may be cited as the “Tax Expenditure Transparency […]

  • Resolution in Opposition to a Carbon Tax October 11, 2013

    Resolution in Opposition to a Carbon Tax Summary This resolution highlights the important role that energy independence plays in U.S. national security, and that access to electricity is both an imperative for Americans’ well-being and for economic growth.  A carbon tax would have an immediate consequence of increased prices for gasoline and electricity with a costly impact on low-income families and businesses alike.  Such a tax would also be inconsistent with ALEC’s Principles of Taxation, because it would use the tax code as a means of manipulating consumer choices.  For these reasons, the resolution concludes that ALEC should oppose a […]

  • Unfunded Pension Liabilities Accounting and Transparency Act August 5, 2013

    Unfunded Pension Liabilities Accounting and Transparency Act Summary The Legislature finds that the future liabilities of the state’s several post-retirement pension and benefits plans may exceed the ability of these plans to fully pay future claims, possibly requiring taxpayers to make unforeseen future contributions to ensure the solvency of these plans or the reduction or elimination of benefits to future and current retirees. Believing both of these alternatives to be unacceptable, the Legislature seeks to identify the extent to which the several pension plans lack the necessary capital to pay all future obligations. Model Policy {Title, enacting clause, etc.}   […]

  • Tax Amnesty Act August 5, 2013

    Providing for a Tax Amnesty Program Summary This Act provides for a tax amnesty program, which can be used by a city, county, municipality, or state to ensure that such tax amnesty program is implemented and administered in order to maximize both efficiency and revenues for the government entity authorizing the program. Model Policy Section 1. {Short Title} This Act shall be known and may be cited as “The 20XX Tax Amnesty Act.” Section 2. {Definition} For the purposes of this act the following term shall have the following definition ascribed to it: (A) “Contingency fee” is defined as any […]

  • State Internet Tax Freedom Act August 5, 2013

    State Internet Tax Freedom Act Summary The borderless nature of the 21st century economy makes the preemption of certain taxes necessary for a growing economy and sound business environment.  The borderless nature also makes Federal legislation the more appropriate vehicle to accomplish the pre-emption. Accordingly the current Federal Internet Tax Freedom Act should continue. This model bill is needed because it forbids either a state or local tax on Internet access, or discriminatory taxes on electronic commerce, in those cases where the Federal Internet Tax Freedom Act may not apply. Model Policy {Title, enacting clause, etc.} Section 1. {Short Title.} […]