Facing the most severe recession since the 1930s, and probably the longest as well, the
U.S. government has adopted an aggressive countercyclical fiscal policy stance, beginning with the Economic Stimulus Act of 2008 in February of that year, shortly after the recessions designated...
Many taxpayers must calculate their federal income tax liability under two sets of rules: those applying to the regular income tax and those of the alternative minimum tax. If a taxpayer owes more tax under the alternative rules, then the difference is paid as AMT. The AMT hits people in some...
Policymakers are considering modifications to the tax treatment of employer-sponsored insurance (ESI) as a way to raise revenue to help pay for health reform and provide incentives to reduce health care costs. Understanding how current subsidies work is important to assessing health reform...
Tax Notes, July 27, 2009. Leonard E. Burman is a fellow at the Urban Institute and director of the Urban-Brookings Tax Policy Center. He previously served as deputy assistant secretary for tax analysis at the Treasury Department from 1998 to 2000 and as senior analyst at the Congressional Budget...
The largest tax preferences for housing, health care, and retirement saving reduce federal revenues by about 3 percent of GDP. They raise after-tax income proportionally more for higher income groups than lower income groups, but raise income proportionately less for those at the very top. The...
The U.S. budget is on an unsustainable path. That is because Social Security, Medicare, and Medicaid, which together constituted almost one half of noninterest spending before the recent stimulus plan, are all growing faster than tax revenues. If these programs are not reformed, tax burdens...
The financial crisis has provoked calls for a fundamental reform of the nation's retirement saving structure. This article argues that rather than dismantle the existing system, policymakers should build on existing reforms and expand the automatic 401(k) to help eligible workers save more and...
Washington Times op-ed, May 19, 2009. Expanding health-care access is a top priority for the Obama administration, and leaders in Congress are on board. Political leaders also agree that any health insurance expansion must not increase the deficit. So how do we pay for health care without...
This paper outlines a plan for a VAT dedicated to paying for a new universal health insurance voucher combined with a vastly simplified and much flatter income tax. Top income tax rates could be cut to 25% or less and most taxpayers would not have to file returns. The health care voucher would...
Most advanced countries exempt returns to retirement saving from income tax, but private saving rates are falling and many people are saving too little for retirement. There is a trade-off between the goals of promoting wide participation in retirement saving plans and allowing more choice to...
Activist Fiscal Policy to Stabilize Economic Activity
Facing the most severe recession since the 1930s, and probably the longest as well, the
U.S. government has adopted an aggressive countercyclical fiscal policy stance, beginning with the Economic Stimulus Act of 2008 in February of that year, shortly after the recessions designated...
AMT Coverage by State, 2007
Many taxpayers must calculate their federal income tax liability under two sets of rules: those applying to the regular income tax and those of the alternative minimum tax. If a taxpayer owes more tax under the alternative rules, then the difference is paid as AMT. The AMT hits people in some...
Tax subsidies for private health insurance: Who benefits and at what cost?
Policymakers are considering modifications to the tax treatment of employer-sponsored insurance (ESI) as a way to raise revenue to help pay for health reform and provide incentives to reduce health care costs. Understanding how current subsidies work is important to assessing health reform...
Conversations: Leonard Burman
Tax Notes, July 27, 2009. Leonard E. Burman is a fellow at the Urban Institute and director of the Urban-Brookings Tax Policy Center. He previously served as deputy assistant secretary for tax analysis at the Treasury Department from 1998 to 2000 and as senior analyst at the Congressional Budget...
Distributional Effects of Tax Expenditures
The largest tax preferences for housing, health care, and retirement saving reduce federal revenues by about 3 percent of GDP. They raise after-tax income proportionally more for higher income groups than lower income groups, but raise income proportionately less for those at the very top. The...
Do We Need a Value-Added Tax to Solve Our Long-Run Budget Problems?
The U.S. budget is on an unsustainable path. That is because Social Security, Medicare, and Medicaid, which together constituted almost one half of noninterest spending before the recent stimulus plan, are all growing faster than tax revenues. If these programs are not reformed, tax burdens...
Beyond the Storm: New Reforms for 401(k) Plans
The financial crisis has provoked calls for a fundamental reform of the nation's retirement saving structure. This article argues that rather than dismantle the existing system, policymakers should build on existing reforms and expand the automatic 401(k) to help eligible workers save more and...
Different Way to Pay for Health Reform
Washington Times op-ed, May 19, 2009. Expanding health-care access is a top priority for the Obama administration, and leaders in Congress are on board. Political leaders also agree that any health insurance expansion must not increase the deficit. So how do we pay for health care without...
A Blueprint for Tax Reform and Health Reform
This paper outlines a plan for a VAT dedicated to paying for a new universal health insurance voucher combined with a vastly simplified and much flatter income tax. Top income tax rates could be cut to 25% or less and most taxpayers would not have to file returns. The health care voucher would...
Taxation of Saving for Retirement: Current Rules and Alternative Reform Approaches
Most advanced countries exempt returns to retirement saving from income tax, but private saving rates are falling and many people are saving too little for retirement. There is a trade-off between the goals of promoting wide participation in retirement saving plans and allowing more choice to...