This policy brief summarizes the impact of traditional individual retirement accounts and Roth individual retirement accounts on personal choices and on government finances. Although the accounts are equivalent under certain circumstances, in practice they often differ in important ways for both...
In this report, we examine the different ways that Roth individual retirement accounts (IRAs) and traditional IRAs affect their investors and the government. People who want to shelter more income per dollar deposited in the account, provide larger bequests, or eliminate uncertainty about how...
If the United States undertakes actions to address the risks of climate change, the use of coal in the power sector will decline rapidly. Twenty-six US counties are classified as “coal-mining dependent,” meaning the coal industry is a major employer. In these areas, the industry is also an...
This policy brief summarizes the implications of a carbon-constrained future on coal-dependent local governments in the United States. It considers the outlook for US coal production over the next decade under such conditions and explores how county finances could be affected. It also considers...
Distributional analyses play a prominent role in policy discussions. Both tax and transfer policy have important distributional consequences, but traditionally they have been examined separately. This report describes a new methodology for integrated distributional analysis that imports results...
The Trump administration has announced the broad outlines of a tax reform plan that contains many provisions similar to those in the House GOP tax reform “blueprint” announced last year, but there are fundamental differences in the provisions affecting businesses and investors. While different,...
Eric Toder discusses a potential Border Adjustment Tax and Destination Based Cash Flow in this Milken Review article, originally published here on Friday, March 24, 2017.
Introducing a federal consumption tax as a replacement for the employer payroll tax would achieve the intended policy goals of prior consumption tax proposals while overcoming their policy shortcomings. The base and design of the consumption and employer payroll taxes are closely related,...
A longstanding concern of state and local governments is that a federal value-added tax (VAT) could shrink sales tax bases. But a federal VAT could have even bigger effects on other revenues and spending through changes in incomes, relative prices, and asset values. To illustrate the range of...
The federal tax system imposes a number of excise taxes on goods and services such as gasoline, alcohol, tobacco, air travel, and health care. In fiscal year 2014, the federal government raised $93.4 billion or 0.5 percent of GDP from excise taxes, accounting for about 3 percent of total federal...
Roth IRAs Versus Traditional IRAs: Implications for Individuals and Government
This policy brief summarizes the impact of traditional individual retirement accounts and Roth individual retirement accounts on personal choices and on government finances. Although the accounts are equivalent under certain circumstances, in practice they often differ in important ways for both...
How Shifting from Traditional IRAs to Roth IRAs Affects Personal and Government Finances
In this report, we examine the different ways that Roth individual retirement accounts (IRAs) and traditional IRAs affect their investors and the government. People who want to shelter more income per dollar deposited in the account, provide larger bequests, or eliminate uncertainty about how...
The Risk of Fiscal Collapse in Coal-Reliant Communities
If the United States undertakes actions to address the risks of climate change, the use of coal in the power sector will decline rapidly. Twenty-six US counties are classified as “coal-mining dependent,” meaning the coal industry is a major employer. In these areas, the industry is also an...
Why Local Governments Should Prepare for the Fiscal Effects of a Dwindling Coal Industry
This policy brief summarizes the implications of a carbon-constrained future on coal-dependent local governments in the United States. It considers the outlook for US coal production over the next decade under such conditions and explores how county finances could be affected. It also considers...
A Methodology for Integrated Distributional Analysis of Taxes and Transfers
Distributional analyses play a prominent role in policy discussions. Both tax and transfer policy have important distributional consequences, but traditionally they have been examined separately. This report describes a new methodology for integrated distributional analysis that imports results...
Neutral Tax Reform with 15 Percent Business Income Tax Rate
The Trump administration has announced the broad outlines of a tax reform plan that contains many provisions similar to those in the House GOP tax reform “blueprint” announced last year, but there are fundamental differences in the provisions affecting businesses and investors. While different,...
Tax Adjustments at the Border: Perceptions and Reality
Eric Toder discusses a potential Border Adjustment Tax and Destination Based Cash Flow in this Milken Review article, originally published here on Friday, March 24, 2017.
A Federal Consumption Tax as Replacement for the Employer Payroll Tax
Introducing a federal consumption tax as a replacement for the employer payroll tax would achieve the intended policy goals of prior consumption tax proposals while overcoming their policy shortcomings. The base and design of the consumption and employer payroll taxes are closely related,...
Effects of a Federal Value-Added Tax on State and Local Budgets
A longstanding concern of state and local governments is that a federal value-added tax (VAT) could shrink sales tax bases. But a federal VAT could have even bigger effects on other revenues and spending through changes in incomes, relative prices, and asset values. To illustrate the range of...
The Distributional Burden of Federal Excise Taxes
The federal tax system imposes a number of excise taxes on goods and services such as gasoline, alcohol, tobacco, air travel, and health care. In fiscal year 2014, the federal government raised $93.4 billion or 0.5 percent of GDP from excise taxes, accounting for about 3 percent of total federal...