With support from the Bush administration, the Federal Reserve Board Chairman, and Congress, a major cut in the federal income tax is almost certain. The question now is what type of cut it should be. Proponents often speak as though all tax cuts would benefit all groups. Not all income tax cuts...
[Financial Times] In many ways, the debate over the tax bill was simply a warm-up for the much larger budgetary issues that Congress and President George W. Bush must face over the next few years. There is little doubt that if healthcare and retirement spending increase as scheduled,...
The Alternative Minimum Tax albatross just keeps getting bigger and bigger and neither political party yet wants to take responsibility. Fixes are possible, but they require compromise over articles of faith for both parties.
[New York Times] President Bush will sign his long-promised tax cut today. But conservatives shouldn't break out the champagne just yet, nor should liberals start taking their antidepressants. Passing the cuts was easy. Mesmerized by projections of mountainous surpluses, few legislators...
[Houston Chronicle] Why is the tax code so complicated? Because whenever politicians face important tax policy choices, they always compromise with more complexity. That way they can avoid painful trade-offs.
In principle, both American voters and their elected officials want to support marriage and the family. One would expect, then, that our expenditure programs and tax code would reflect this desire. Unfortunately, this is not always the case. Instead of a consistent policy, we have a crazy quilt...
A bipartisan consensus favors public policy initiatives to expand health insurance coverage. This paper summarizes new CPS data on health insurance coverage for the nonelderly and discusses the issues involved in subsidizing health insurance. We outline a tax credit option designed to diminish...
This paper presents alternative measures of actual and projected net benefits (benefits minus payroll taxes) from the Old and Survivors Insurance (OASI) component of Social Security, based on results from a microsimulation model. The simulations take into account marital histories, income, and...
The bias against tax simplification is strong, and history does not provide many examples of success. Nonetheless, conventional wisdom on the history lesson may be mistaken.
Designing Tax Cuts to Benefit Low-Income Families
With support from the Bush administration, the Federal Reserve Board Chairman, and Congress, a major cut in the federal income tax is almost certain. The question now is what type of cut it should be. Proponents often speak as though all tax cuts would benefit all groups. Not all income tax cuts...
Spending is Key to Tough Tax Questions
[Financial Times] In many ways, the debate over the tax bill was simply a warm-up for the much larger budgetary issues that Congress and President George W. Bush must face over the next few years. There is little doubt that if healthcare and retirement spending increase as scheduled,...
Moving Beyond the Fight Over the Alternative Minimum Tax
The Alternative Minimum Tax albatross just keeps getting bigger and bigger and neither political party yet wants to take responsibility. Fixes are possible, but they require compromise over articles of faith for both parties.
Don't Count on That Tax Cut
[New York Times] President Bush will sign his long-promised tax cut today. But conservatives shouldn't break out the champagne just yet, nor should liberals start taking their antidepressants. Passing the cuts was easy. Mesmerized by projections of mountainous surpluses, few legislators...
What Next if Not Simplification?
Senior Fellow Eugene Steuerle argues for simplification as a main goal of tax reform.
Think FRED: Tax Cuts Just Add to Complexity
[Houston Chronicle] Why is the tax code so complicated? Because whenever politicians face important tax policy choices, they always compromise with more complexity. That way they can avoid painful trade-offs.
Valuing Marital Commitment in our Transfer and Tax Systems
In principle, both American voters and their elected officials want to support marriage and the family. One would expect, then, that our expenditure programs and tax code would reflect this desire. Unfortunately, this is not always the case. Instead of a consistent policy, we have a crazy quilt...
First, Do No Harm: Designing Tax Incentives for Health Insurance
A bipartisan consensus favors public policy initiatives to expand health insurance coverage. This paper summarizes new CPS data on health insurance coverage for the nonelderly and discusses the issues involved in subsidizing health insurance. We outline a tax credit option designed to diminish...
Lifetime Distributional Effects of Social Security Retirement Benefits
This paper presents alternative measures of actual and projected net benefits (benefits minus payroll taxes) from the Old and Survivors Insurance (OASI) component of Social Security, based on results from a microsimulation model. The simulations take into account marital histories, income, and...
The Optimistic View on Simplification
The bias against tax simplification is strong, and history does not provide many examples of success. Nonetheless, conventional wisdom on the history lesson may be mistaken.