Research report

Long-term budget projections do not have to be right to be useful. Even when they are wrong, forecasts give valuable information about the long-term direction of key sectors of the budget, economy, and population. A variety of models now shows important demographic shifts—such as the aging of...

December 1, 2016
Rudolph G. Penner
Research report

Bad framing of fiscal policy contributes to a poor allocation of money collected and spent. Almost all real growth in government goes automatically to health, retirement and tax subsidies, while spending on children, the work force, and infrastructure are scheduled for decline as a share of...

December 1, 2016
C. Eugene SteuerleCaleb Quakenbush
Research report

Every year, the Urban Institute produces hundreds of reports, briefings, webcasts, and blog posts. In this publication, Urban’s State and Local Finance Initiative has brought together the latest evidence-based research, data, and solutions with direct relevance for analysts charged with crafting...

August 20, 2015
Norton FrancisTracy GordonMegan Randall
Research report

This paper analyzes the House GOP tax reform blueprint, which would significantly reduce marginal tax rates, increase standard deduction amounts, repeal personal exemptions and most itemized deductions, allow businesses to expense new investment, and not allow businesses to deduct net interest...

September 16, 2016
James R. NunnsLeonard E. BurmanJeffrey RohalyJoseph RosenbergBenjamin R. Page
Research report

This report finds that both federal and state income taxes are generally progressive but (1) state systems are much less progressive than the federal system and (2) the degree of progressivity varies widely among the states. Federal income taxes became more progressive following 2012 legislation...

June 29, 2016
Frank SammartinoNorton Francis
Research report

Donald Trump’s tax plan would cost about $6 trillion over 10 years. Trump claims his plan would cut taxes for every income group, with the largest tax cuts for working- and middle-class families. But despite its enormous price tag, his plan would actually significantly raise taxes for millions...

October 28, 2016
Lily L. Batchelder
Research report

This paper updates an analysis of Hillary Clinton’s tax proposals, which would raise taxes on high-income taxpayers, increase the child tax credit, modify taxation of multinational corporations, reform capital gains taxes, and increase estate and gift taxes. Her proposals would increase revenue...

October 18, 2016
Richard C. AuxierLeonard E. BurmanJames R. NunnsJeffrey Rohaly
Research report

This paper analyzes presidential candidate Donald Trump’s revised tax proposal, which would significantly reduce marginal tax rates, increase standard deduction amounts, repeal personal exemptions, cap itemized deductions, and allow businesses to elect to expense new investment and not deduct...

October 18, 2016
James R. NunnsLeonard E. BurmanJeffrey RohalyJoseph Rosenberg
Research report

This paper examines how changes to the individual income tax affect long-term economic growth. The structure and financing of a tax change are critical to achieving economic growth. Tax rate cuts may encourage individuals to work, save, and invest, but if the tax cuts are not financed by...

September 9, 2014
William G. GaleAndrew Samwick
Research report

Controversy rages about how to tax carried interest. One view sees carry as compensation that should be taxed like other labor income. Another sees carry as a reward for financial risk-taking that should be taxed like capital income. A third sees carry as creating a costly tax arbitrage. In this...

October 6, 2016
Donald Marron