The United States faces a large medium-term federal budget deficit and an unsustainable long-term fiscal gap. Left unattended, these shortfalls will hobble and eventually cripple the economy. The only plausible way to close the gap is through a combination of spending cuts and tax increases....
The ongoing debate over health reform at times almost appears like a sporting event, with Democrats and Republicans trying to name winners and losers in passing or repealing legislation. But in my Fiscal Times op-ed this week, I explain why, when it comes to health reform, this winner-take-all...
Many taxpayers can lower their taxable income by itemizing deductions, which in turn lowers tax liability. Itemized deductions reduce tax burdens for taxpayers with decreased ability to pay taxes, such as those experiencing a catastrophic loss, or for taxpayers who spent funds on activities the...
The dependent exemption reduces taxable income by a fixed amount ($3,650 in 2010) for each qualifying child in the family. Benefits depend on a family's marginal tax rate. Low-income families receive a tax reduction of up to $365 per exemption compared to high income families that receive a tax...
In the New York Times' Room for Debate, Roberton Williams discusses the estate tax and why, despite its shortcomings, it still has an important role in federal tax policy.
This article examines the economic benefits of alternative minimum tax reform relative to the current policy baseline. The authors find that AMT reform can lead to improved progressivity, greater efficiency, and a lessened compliance burden while raising an equal amount of revenue.
Complexity plagues the tax code for low-income families, particularly with regard to child related credits. Many analysts advocate separating out the essential functions of these credits: subsidizing work, subsidizing children, and subsidizing specifi c activities such as child care. This paper...
Provisions in the tax law that benefit families with children include the child tax credit, personal exemptions for dependent children, the earned income tax credit, availability of head of household filing status, the child and dependent care credit, and tuition tax credits and deductions for...
The debate over extending the 20012003 tax cuts beyond 2010 has revolved around two options: extend all provisions for all taxpayers, and the presidents proposal to extend all provisions except those that apply only to high-income taxpayers. A third option has drawn attention: extend the...
We present new estimates of the budget outlook, based on the latest projections from the Congressional Budget Office and the Medicare and Social Security Trustee reports. The medium-term budget outlook has not changed appreciably since earlier this year. Under reasonable assumptions, the federal...
A VAT for the United States: Part of the Solution
The United States faces a large medium-term federal budget deficit and an unsustainable long-term fiscal gap. Left unattended, these shortfalls will hobble and eventually cripple the economy. The only plausible way to close the gap is through a combination of spending cuts and tax increases....
Health Care Brawl: All or Nothing Doesn't Work
The ongoing debate over health reform at times almost appears like a sporting event, with Democrats and Republicans trying to name winners and losers in passing or repealing legislation. But in my Fiscal Times op-ed this week, I explain why, when it comes to health reform, this winner-take-all...
Who Itemizes Deductions?
Many taxpayers can lower their taxable income by itemizing deductions, which in turn lowers tax liability. Itemized deductions reduce tax burdens for taxpayers with decreased ability to pay taxes, such as those experiencing a catastrophic loss, or for taxpayers who spent funds on activities the...
Who Benefits From the Dependent Exemption?
The dependent exemption reduces taxable income by a fixed amount ($3,650 in 2010) for each qualifying child in the family. Benefits depend on a family's marginal tax rate. Low-income families receive a tax reduction of up to $365 per exemption compared to high income families that receive a tax...
It's Not About Economic Equality
In the New York Times' Room for Debate, Roberton Williams discusses the estate tax and why, despite its shortcomings, it still has an important role in federal tax policy.
Alternative to the Alternative: The Economic Effects of AMT Reform
This article examines the economic benefits of alternative minimum tax reform relative to the current policy baseline. The authors find that AMT reform can lead to improved progressivity, greater efficiency, and a lessened compliance burden while raising an equal amount of revenue.
Simplicity: Considerations in Designing a Unified Child Credit
Complexity plagues the tax code for low-income families, particularly with regard to child related credits. Many analysts advocate separating out the essential functions of these credits: subsidizing work, subsidizing children, and subsidizing specifi c activities such as child care. This paper...
Tax Savings From an Additional Child
Provisions in the tax law that benefit families with children include the child tax credit, personal exemptions for dependent children, the earned income tax credit, availability of head of household filing status, the child and dependent care credit, and tuition tax credits and deductions for...
A New Tax Bracket for Millionaires?
The debate over extending the 20012003 tax cuts beyond 2010 has revolved around two options: extend all provisions for all taxpayers, and the presidents proposal to extend all provisions except those that apply only to high-income taxpayers. A third option has drawn attention: extend the...
The Federal Budget Outlook, Chapter 11
We present new estimates of the budget outlook, based on the latest projections from the Congressional Budget Office and the Medicare and Social Security Trustee reports. The medium-term budget outlook has not changed appreciably since earlier this year. Under reasonable assumptions, the federal...