A longstanding concern of state and local governments is that a federal value-added tax (VAT) could severely limit their reliance on sales taxes as a major source of revenue. This concern is too narrowly focused; a federal VAT could affect revenues from other sources and spending more than sales...
The Tax Policy Center (TPC) prepared revenue and distributional estimates of a proposal to replace the current tax benefits for defined contribution (DC) qualified retirement plans with a new Guaranteed Retirement Account (GRA). TPC estimates that the proposal would reduce federal income and...
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 cuts often look like “free lunches” for taxpayers, but they eventually have to be paid for with other tax increases or spending cuts. We examine the distributional effects – with and without financing – of a tax plan consistent with the outline the Trump Administration produced in April. ...
While policy makers and news headlines focus on debates about health care and tax policy, the U.S. fiscal outlook remains troubling and is a constraint against which new proposals should be judged. Budget deficits appear manageable in the short run, but the nation’s debt-GDP ratio is already...
Bill Gale discusses the current tax reform initiatives by Congress and the Administration and outlines some issues Republicans may face when trying to pass tax legislation in this...
This brief summarizes, individually and jointly, an excise tax on carbon and an expansion of EITC benefits to childless workers. We find that although in principle a carbon tax that lowers wages could affect EITC benefits and thus impact low-to-moderate income households, the likely magnitude of...
This paper examines, individually and jointly, an excise tax on carbon and an expansion of EITC benefits to childless workers. We estimate how an illustrative tax of $32 per ton of CO2 from fossil fuel combustion would burden households differentially across the income distribution, how it could...
Mark Mazur, director of the Urban-Brookings Tax Policy Center, testified before the US Senate Committee on Finance as part of the hearing "Comprehensive Tax Reform: Prospects and Challenges." Mazur presented the three principles of tax policy, reviewed lessons from previous reform efforts, and...
Effects of a Federal Value-Added Tax on State and Local Government Budgets
A longstanding concern of state and local governments is that a federal value-added tax (VAT) could severely limit their reliance on sales taxes as a major source of revenue. This concern is too narrowly focused; a federal VAT could affect revenues from other sources and spending more than sales...
Appendix to: Effects of a Federal Value-Added Tax on State and Local Government Budgets
This is the appendix to the paper, Effects of a Federal Value-Added Tax on State and Local Government Budgets
Estimates of a Proposal to Establish Guaranteed Retirement Accounts, Financed by Reduced Limits on Current Law Contributions to Defined Contribution Retirement Saving Plans
The Tax Policy Center (TPC) prepared revenue and distributional estimates of a proposal to replace the current tax benefits for defined contribution (DC) qualified retirement plans with a new Guaranteed Retirement Account (GRA). TPC estimates that the proposal would reduce federal income and...
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,...
Cutting Taxes and Making Future Americans Pay for It: How Trump’s Tax Cuts Could Hurt Many Households
Tax cuts often look like “free lunches” for taxpayers, but they eventually have to be paid for with other tax increases or spending cuts. We examine the distributional effects – with and without financing – of a tax plan consistent with the outline the Trump Administration produced in April. ...
The Fiscal Outlook in a Period of Policy Uncertainty
While policy makers and news headlines focus on debates about health care and tax policy, the U.S. fiscal outlook remains troubling and is a constraint against which new proposals should be judged. Budget deficits appear manageable in the short run, but the nation’s debt-GDP ratio is already...
Can Republicans Thread the Needle on Tax Policy?
Bill Gale discusses the current tax reform initiatives by Congress and the Administration and outlines some issues Republicans may face when trying to pass tax legislation in this...
Potential Linkages between a U.S. Carbon Tax and the Earned Income Tax Credit
This brief summarizes, individually and jointly, an excise tax on carbon and an expansion of EITC benefits to childless workers. We find that although in principle a carbon tax that lowers wages could affect EITC benefits and thus impact low-to-moderate income households, the likely magnitude of...
A U.S. Carbon Tax and the Earned Income Tax Credit
This paper examines, individually and jointly, an excise tax on carbon and an expansion of EITC benefits to childless workers. We estimate how an illustrative tax of $32 per ton of CO2 from fossil fuel combustion would burden households differentially across the income distribution, how it could...
Comprehensive Tax Reform
Mark Mazur, director of the Urban-Brookings Tax Policy Center, testified before the US Senate Committee on Finance as part of the hearing "Comprehensive Tax Reform: Prospects and Challenges." Mazur presented the three principles of tax policy, reviewed lessons from previous reform efforts, and...