The congressional budget process has been so perverted that it no longer imposes much discipline on fiscal decisionmaking, comments Rudolph Penner, a former director of the Congressional Budget Office. Penner explains how the situation arose and what to do about it.
The ongoing debate over health reform at times almost appears like a sporting event, with Democrats and Republicans trying to name winners and losers in passing or repealing legislation. But in my Fiscal Times op-ed this week, I explain why, when it comes to health reform, this winner-take-all...
Treasury Secretary Geithner recently warned that the U.S. may default if Congress doesn't increase the federal debt limit. In this guest commentary at CNN Money, Donald Marron explains how Geithner will make sure that the U.S. does not default on the public debt, even if Congress is slow to...
Many taxpayers can lower their taxable income by itemizing deductions, which in turn lowers tax liability. Itemized deductions reduce tax burdens for taxpayers with decreased ability to pay taxes, such as those experiencing a catastrophic loss, or for taxpayers who spent funds on activities the...
This paper reviews the recent evolution of thinking and evidence regarding the effectiveness of activist fiscal policy. Although fiscal interventions aimed at stimulating and stabilizing the economy have returned to common use, their efficacy remains controversial. This paper reviews the debate...
The dependent exemption reduces taxable income by a fixed amount ($3,650 in 2010) for each qualifying child in the family. Benefits depend on a family's marginal tax rate. Low-income families receive a tax reduction of up to $365 per exemption compared to high income families that receive a tax...
In the New York Times' Room for Debate, Roberton Williams discusses the estate tax and why, despite its shortcomings, it still has an important role in federal tax policy.
Brookings Senior Fellow Henry J. Aaron has been named the recipient of the National Tax Associations 2010 Daniel M. Holland Medal, awarded for his lifetime achievements influencing the study and practice of public finance. Aaron figured prominently in advancing substantive discourse within...
The current economic downturn has resulted in a sharp decline in state tax revenues. Forty-six states faced budget shortfalls when passing their fiscal year (FY) 2011 budgets, and 17 states reported shortfalls of more than 20 percent. According to the National Association of State Budget...
The United States is on a disastrous fiscal path. In the conflict between restoring solvency and stimulating the economy, the president's budget is more focused on the latter. Yet even before the recession Medicare and Medicaid, along with Social Security, accounted for almost 50 percent of...
The Budget Process: A Maze Perverted by Trickery
The congressional budget process has been so perverted that it no longer imposes much discipline on fiscal decisionmaking, comments Rudolph Penner, a former director of the Congressional Budget Office. Penner explains how the situation arose and what to do about it.
Health Care Brawl: All or Nothing Doesn't Work
The ongoing debate over health reform at times almost appears like a sporting event, with Democrats and Republicans trying to name winners and losers in passing or repealing legislation. But in my Fiscal Times op-ed this week, I explain why, when it comes to health reform, this winner-take-all...
Debt Ceiling: Geithner Won't Let Us Default
Treasury Secretary Geithner recently warned that the U.S. may default if Congress doesn't increase the federal debt limit. In this guest commentary at CNN Money, Donald Marron explains how Geithner will make sure that the U.S. does not default on the public debt, even if Congress is slow to...
Who Itemizes Deductions?
Many taxpayers can lower their taxable income by itemizing deductions, which in turn lowers tax liability. Itemized deductions reduce tax burdens for taxpayers with decreased ability to pay taxes, such as those experiencing a catastrophic loss, or for taxpayers who spent funds on activities the...
Activist Fiscal Policy
This paper reviews the recent evolution of thinking and evidence regarding the effectiveness of activist fiscal policy. Although fiscal interventions aimed at stimulating and stabilizing the economy have returned to common use, their efficacy remains controversial. This paper reviews the debate...
Who Benefits From the Dependent Exemption?
The dependent exemption reduces taxable income by a fixed amount ($3,650 in 2010) for each qualifying child in the family. Benefits depend on a family's marginal tax rate. Low-income families receive a tax reduction of up to $365 per exemption compared to high income families that receive a tax...
It's Not About Economic Equality
In the New York Times' Room for Debate, Roberton Williams discusses the estate tax and why, despite its shortcomings, it still has an important role in federal tax policy.
TPC Affiliate Honored for Lifetime Achievement by the National Tax Association
Brookings Senior Fellow Henry J. Aaron has been named the recipient of the National Tax Associations 2010 Daniel M. Holland Medal, awarded for his lifetime achievements influencing the study and practice of public finance. Aaron figured prominently in advancing substantive discourse within...
State Revenue Responses to Fiscal Shortfalls
The current economic downturn has resulted in a sharp decline in state tax revenues. Forty-six states faced budget shortfalls when passing their fiscal year (FY) 2011 budgets, and 17 states reported shortfalls of more than 20 percent. According to the National Association of State Budget...
Have Recent Budget Policies Contributed to Long-Run Fiscal Stability?
The United States is on a disastrous fiscal path. In the conflict between restoring solvency and stimulating the economy, the president's budget is more focused on the latter. Yet even before the recession Medicare and Medicaid, along with Social Security, accounted for almost 50 percent of...