Research report

In a tax system with increasing marginal tax rates, the tax increase from a boost to income is at least equal to the tax reduction from a decline in income and is larger if the change in income crosses a marginal tax bracket. As a result, people with volatile incomes may pay more tax than people...

November 24, 2003
Peter Orszag
Research report

Health costs now total close to one-fifth of households' personal income. For moderate-income workers whose cash wages are lower then they would be if employers weren't paying for their health insurance, the bite is often bigger. Many elected officials seeking health care reform don't even know...

September 29, 2003
C. Eugene Steuerle
Research report

On June 13, 2003, the IRS requested public comments on a proposed EITC procedure. The goal of this new EITC procedure, known as precertification, is to reduce EITC error rates by individuals who are ineligible. Because a variety of questions have been raised about this procedure, and also...

July 14, 2003
C. Eugene Steuerle
Research report

This paper evaluates the tax proposals put forth by the Bush Administration, the House of Representatives, and the Senate Finance Committee, with respect to their impact on revenues, short-term stimulus, long-term growth and distribution of tax burdens and after-tax income. Particular attention...

May 19, 2003
Leonard E. Burman, William G. Gale, Peter Orszag
Research report

In 1986, a policy decision was made to exempt poor people from the income tax. Increases in the earned income tax credit (EITC) and the introduction of the child tax credit (CTC) have increased the so-called "tax entry threshold" since 1986, and provisions in the Economic Growth and Tax Relief...

May 12, 2003
Elaine Maag
Research report

While the payroll tax rates for Hospital Insurance and OASDI have increased since 1966, the HI rate has risen faster. The HI rate is now almost one-quarter of the OASDI rate. Orszag concludes that removing the current $87,000 cap on taxable payroll under OASDI would raise a substantial share of...

May 5, 2003
Peter Orszag
Research report

In the face of a stagnant economy, a war, a rapidly deteriorating short-term fiscal outlook, and a substantial long-term fiscal problem, the Bush Administration has proposed massive, regressive, permanent tax cuts that it acknowledges are unsustainable. This paper shows that under realistic...

April 7, 2003
William G. Gale, Peter Orszag
Research report

Congress must be careful in deciding whether or not to subject stock options to Social Security and unemployment tax. There is certainly a case to be made for not doing so, but Congress could find itself in the funny position of offering special employment tax treatment to employees who have...

August 5, 2002
C. Eugene Steuerle
Research report

In the early 1970s, a Democratic Congress and a Republican President (Nixon) became concerned about the lack of pension funding, vesting, and coverage for most Americans. They decided to do something about it. This president and Congress, I believe, are not less qualified or less concerned with...

March 11, 2002
C. Eugene Steuerle
Research report

Providing fiscal or tax subsidies to try to promote additional work and saving is a relatively modern notion. These subsidies may stimulate demand by putting more money in the economy, but they are designed primarily to affect behavior through incentives. Modern industrial economies like the U.S...

February 25, 2002
C. Eugene Steuerle