The statutory rate structure of the federal individual income tax the number and width of brackets and the level of rates has changed significantly over time, as has the distribution of taxpayers across rates. This article examines how the top statutory marginal tax rate changed at various...
This paper analyzes three options to increase individual income tax rates to reduce the projected debt-to-GDP to 60% by 2020, 2025 or 2035. Option 1 increases all individual income tax rates, Option 2 increases only the top three rates, and Option 3 only the top two rates. Options are analyzed...
Leonard Burman's testimony before the Senate Budget Committee on tax reform to encourage economic growth, reduce the federal deficit, and to promote fairness.
A value added tax (VAT) with a broad base and a VAT that excludes food, housing, and medical care would both impose larger burdens as a share of income on low-income than on high-income taxpayers. A rebate aimed at low-income taxpayers would reduce their VAT burden more than exclusions of...
Effective tax rates (ETRs) measure how much people pay in taxes as a percentage of their pretax incomes. That seems simple, but theres an important complication: there are different ways to measure how much someone pays in taxes and how much he collects in pretax income. Those choices matter a...
This paper takes a broad look at tax expenditures in the context of revenue raising tax reform. It first reviews how tax expenditures have changed over the past 25 years and provides estimates of the distribution of tax savings resulting from tax expenditures today. The paper then examines three...
To help pay for expanded health insurance coverage, the health reform legislation enacted in 2010 included a new 3.8 percent tax on the net investment income of high-income taxpayers. When it goes into effect in 2013, it will increase the top tax rate on capital gains, dividends, and other...
In "100 Million Unnecessary Returns," Columbia University law professor Michael J. Graetz proposed a sweeping reform of the federal tax system that is intended to simplify the tax system, improve economic incentives, and maintain fairness. The Graetz proposal would remove most current taxpayers...
Tax rates on capital gains have fluctuated over the past century, sometimes matching the rates for ordinary income but more often substantially below them. The current top gains tax rate is 15 percent, less than half the 35 percent top rate on ordinary income and lower than at any time since the...
Changes in the Distribution of Top Marginal Tax Rates, 1958-2009
The statutory rate structure of the federal individual income tax the number and width of brackets and the level of rates has changed significantly over time, as has the distribution of taxpayers across rates. This article examines how the top statutory marginal tax rate changed at various...
Reducing the Deficit by Increasing Individual Income Tax Rates
This paper analyzes three options to increase individual income tax rates to reduce the projected debt-to-GDP to 60% by 2020, 2025 or 2035. Option 1 increases all individual income tax rates, Option 2 increases only the top three rates, and Option 3 only the top two rates. Options are analyzed...
Tax Reform to Encourage Growth, Reduce the Deficit, and Promote Fairness
Leonard Burman's testimony before the Senate Budget Committee on tax reform to encourage economic growth, reduce the federal deficit, and to promote fairness.
Can Tax Reform Save the Economy?
In a contribution to the International Economy magazine, Donald Marron offers his perspective on tax reform.
Implications of Different Bases for a VAT
A value added tax (VAT) with a broad base and a VAT that excludes food, housing, and medical care would both impose larger burdens as a share of income on low-income than on high-income taxpayers. A rebate aimed at low-income taxpayers would reduce their VAT burden more than exclusions of...
Measuring Effective Tax Rates
Effective tax rates (ETRs) measure how much people pay in taxes as a percentage of their pretax incomes. That seems simple, but theres an important complication: there are different ways to measure how much someone pays in taxes and how much he collects in pretax income. Those choices matter a...
Curbing Tax Expenditures
This paper takes a broad look at tax expenditures in the context of revenue raising tax reform. It first reviews how tax expenditures have changed over the past 25 years and provides estimates of the distribution of tax savings resulting from tax expenditures today. The paper then examines three...
Health Reform's Tax on Investment: Facts and Myths
To help pay for expanded health insurance coverage, the health reform legislation enacted in 2010 included a new 3.8 percent tax on the net investment income of high-income taxpayers. When it goes into effect in 2013, it will increase the top tax rate on capital gains, dividends, and other...
Using a VAT to Reform the Income Tax
In "100 Million Unnecessary Returns," Columbia University law professor Michael J. Graetz proposed a sweeping reform of the federal tax system that is intended to simplify the tax system, improve economic incentives, and maintain fairness. The Graetz proposal would remove most current taxpayers...
Tax Rates on Capital Gains
Tax rates on capital gains have fluctuated over the past century, sometimes matching the rates for ordinary income but more often substantially below them. The current top gains tax rate is 15 percent, less than half the 35 percent top rate on ordinary income and lower than at any time since the...