tax policy center
The Library

Advanced Search

by Topic:

by Author:

by Type:

by Date Range:
  From last wks

     

E-mail Newsletter

Enter your e-mail address to receive periodic updates on TPC publications and events.

> newsletter archive

Library
 

Publications By Author

Author: Toder, Eric

1-10 of 98     Back to Authors Next>>


Major Surgery Needed: A Call for Structural Reform of the US Corporate Income Tax (Research Report)
Eric ToderAlan Viard

A corporate income tax can play a useful role by preventing shareholders from deferring tax on retained corporate profits. The current U.S. corporate income tax is deeply flawed, however, because it relies on definitions of corporate residence and income sourcing that corporations can easily manipulate, causing economic distortions and erosion of the corporate tax base. Two structural reform options to address these problems are securing international agreement on better ways to allocate the corporate tax base among countries and replacing the corporate income tax with full taxation of American shareholders' dividends and accrued capital gains on stock in publicly traded companies.

Published: 04/04/14
Availability: HTML | PDF


Congress Should Phase Out the Mortgage Interest Deduction (Article)
Eric Toder

The mortgage interest deduction is one of the most expensive federal tax preferences. Supporters claim it stimulates homeownership, which creates broad benefits to society beyond the benefits received by owners. But the case for these external benefits is unproven and the deduction is an ineffective way to promote homeownership. Instead, it provides an incentive for middle-income and upper income people to acquire larger and more expensive homes than they otherwise would. A uniform credit for interest or first home purchases would be a more effective subsidy for homeownership. The deduction, however, should be phased out gradually to minimize market disruption.

Published: 03/28/14
Availability: HTML | PDF


Evaluating Broad-Based Approaches for Limiting Tax Expenditures (Research Report)
Eric ToderJoseph RosenbergAmanda Eng

This paper evaluates six options to achieve across-the-board reductions to a group of major exclusions and deductions in the income tax: (1) limiting their tax benefit to a maximum percentage of income; (2) imposing a fixed dollar cap; (3) reducing them by a fixed-percentage amount; (4) limiting their tax saving to a maximum percentage of their dollar value; (5) replacing preferences with fixed rate refundable credits; and (6) including them in the base of the existing Alternative Minimum Tax (AMT). We discuss issues of design, implementation, and administration, and simulate the revenue, distributional, and incentive effects of the various options.

Published: 02/06/14
Availability:   PDF


Changes in the Organization of Business Activity and Implications for Tax Reform (Research Report)
George A. PleskoEric Toder

This paper documents the increased role of pass-through entities and the associated decline in use of the taxable corporate form since the Tax Reform Act of 1986 (TRA86) and discusses implications for the design of tax policy. We show how significant reductions in the corporate tax rate, absent changes in the personal tax rate, would reverse the organizational form incentives that have existed since TRA86. If the loss in revenue from a rate reduction is offset by a broadening of the tax base, most business entities, comprising most business income, will face an overall increase in their tax burden.

Published: 02/06/14
Availability:   PDF


Corporate Income Tax Reform: Dreaming On (Article)
Eric Toder

Both political parties are calling for corporate tax reform without agreement on specifics. Proposals to broaden the corporate tax base to pay for lower rates or to eliminate taxes on corporate repatriations while trying to prevent income shifting do not address the main problems of taxing multinational corporations in a global economy. This article discusses the need for more fundamental structural reforms and offers up two ideas – securing international agreement on better rules to allocate profits of multinationals among taxing jurisdictions or, alternatively, replacing the U.S. corporate tax with full taxation of dividends and accrued capital gains of U.S. shareholders.

Published: 01/28/14
Availability: HTML | PDF


Who Benefits from Tax-Exempt Bonds?: An Application of the Theory of Tax Incidence (Research Report)
Harvey GalperJoseph RosenbergKim RuebenEric Toder

This paper applies tax incidence theory to estimate the distributional effects of the exemption from federal income tax of interest on state and local bonds and the President's proposal to limit the benefit of the exemption to the 28 percent rate. When one accounts for the effects of changes in rates of return, the exemption still primarily benefits higher-income individuals, though less so than under the traditional approach that assigns all the benefit to holders of tax-exempt bonds. How states and localities respond to lower borrowing costs can either shift benefits to low-income households or increase the net benefit to high income households.

Published: 09/27/13
Availability:   PDF


Taxes on Foreign Earned Income  (Article/Tax Facts)
Eric Toder

While taxation of overseas profits of U.S. multinational corporations has made the headlines lately, U.S. citizens who work overseas also face special rules. Unlike most countries, the United States requires that its citizens pay tax on their worldwide income (with a credit for foreign taxes paid), even when they are residing elsewhere. But the United States also allows its citizens who reside abroad exclusion for the first $97,600 of their foreign earned income and a special housing allowance.

Published: 07/24/13
Availability:   PDF


Evaluating Broad-Based Approaches for Limiting Tax Expenditures (Research Report)
Eric ToderJoseph RosenbergAmanda Eng

This paper evaluates six options to achieve across-the-board reductions to a group of major exclusions and deductions in the income tax: (1) limiting their tax benefit to a maximum percentage of income, (2) imposing a fixed dollar cap, (3) reducing them by fixed-percentage amount, (4) limiting their tax saving to a maximum percentage of their dollar value, (5) replacing them with fixed rate refundable credits, and (6) including them in the base of the existing Alternative Minimum Tax (AMT). We discuss issues of design, implementation, and administration, and simulate the revenue, distributional, and incentive effects of the various options.

Published: 07/10/13
Availability:   PDF


Tax Policy and the Size of Government  (Research Report)
Donald MarronEric Toder

Measuring the size of government is not simple. Standard measures omit important aspects of government action such as the many deductions, credits, and other tax preferences used to influence resource allocation. We argue that many tax preferences are effectively spending. Traditional measures of government size thus understate both spending and revenues. Reductions in spending-like tax preferences are tax increases in traditional budget accounting but are effectively spending reductions; increasing marginal tax rates raises both taxes and spending in our expanded measure. Some tax increases thus reduce government, while others expand it. (Presented at the National Tax Association 2011 Annual Conference)

Published: 06/24/13
Availability:   PDF


Analysis of Specific Tax Provisions in President Obama's FY2014 Budget  (Research Report)
Benjamin H. HarrisJim NunnsKim RuebenEric ToderRoberton Williams

This document reviews several notable tax proposals in President Obama’s Fiscal Year 2014 Budget. These include a 28 percent limit on certain tax expenditures, a cap on tax preferences for retirement savers with high balances, a minimum tax ("Buffett Rule") on high-income taxpayers, alternative incentives for infrastructure investment, and a new measure of inflation ("chained CPI") for indexing tax parameters.

Published: 05/08/13
Availability:   PDF

1-10 of 98     Back to Authors Next>>