Tax cut advocates favor lower taxes and smaller government, but so far they've gotten lower taxes and bigger government. In this Marketplace commentary, Len Burman argues that the resulting deficits will translate into much higher taxes in the future, especially on those with high...
Management theory holds that the major goals for an organization need to be clearly specified and few in number. When workers are given multiple goals, it is often hard to distinguish among them. Failure to achieve primary goals also becomes easier when one has the excuse that he was working on...
Almost no one who has served at the Treasury can help but feel pride at the integrity, vitality, and importance of the institution. With a heritage going back to Alexander Hamilton, time after time it has had to grapple with the economic and financial problems facing the nation--and come up with...
Over a permanent horizon, the fiscal gap now exceeds 7 percent of GDP under the CBO baseline and 10 percent of GDP under an adjusted baseline, substantially higher than a year ago. Allocating the fiscal gap to different programs is not straightforward, though. Most government programs are...
Before 1984, Social Security benefits were exempt from income tax. As part of the Greenspan Commission reforms intended to bolster Social Security's finances, up to 50 percent of Social Security benefits became subject to tax in that year, with proceeds from the income tax allocated to the...
Social Security was designed to redistribute income from those with higher lifetime earnings to those with lower lifetime earnings. The reason is obvious: the system was created to ensure an adequate retirement income for the elderly. Less obvious is how Social Security's many provisions...
Congress continues to let the cost of a tax subsidy grow without bound. Perhaps one day Congress will take on the broader issue of entitlement reform, forcing all entitlement programs to go through some of the hurdles required of discretionary programs. Then those programs would be allowed to...
This testimony was presented before the the House Small Business Subcommittee on Workforce, Empowerment, and Government Programs. Linda Blumberg addresses Health Savings Accounts (HSAs) and HR 3901, a proposal to make private non-group premiums for the high-deductible health plans associated...
This paper examines the economic impacts of the Bush Administration's proposal to make its recent tax cuts permanent. Making the tax cuts permanent would be regressive and would dig a fiscal hole over the next 75 years that is as big as the combined social security and medicare trust fund...
The president's effort to "leave no child behind" has run into opposition on a variety of fronts. The Congress complained that the money was too little, insisted that the president spend less to reduce the deficit, and then passed the Omnibus Reconciliation and Giveaway Acts of 2003 and 2004. In...
Be Careful What You Wish For
Tax cut advocates favor lower taxes and smaller government, but so far they've gotten lower taxes and bigger government. In this Marketplace commentary, Len Burman argues that the resulting deficits will translate into much higher taxes in the future, especially on those with high...
Let It Snow: Opportunity Time For the Treasury Secretary
Management theory holds that the major goals for an organization need to be clearly specified and few in number. When workers are given multiple goals, it is often hard to distinguish among them. Failure to achieve primary goals also becomes easier when one has the excuse that he was working on...
Let It Snow: Opportunity Time For the Treasury
Almost no one who has served at the Treasury can help but feel pride at the integrity, vitality, and importance of the institution. With a heritage going back to Alexander Hamilton, time after time it has had to grapple with the economic and financial problems facing the nation--and come up with...
Sources of the Long-Term Fiscal Gap
Over a permanent horizon, the fiscal gap now exceeds 7 percent of GDP under the CBO baseline and 10 percent of GDP under an adjusted baseline, substantially higher than a year ago. Allocating the fiscal gap to different programs is not straightforward, though. Most government programs are...
Taxable Social Security Benefits
Before 1984, Social Security benefits were exempt from income tax. As part of the Greenspan Commission reforms intended to bolster Social Security's finances, up to 50 percent of Social Security benefits became subject to tax in that year, with proceeds from the income tax allocated to the...
How Progressive Is Social Security and Why?
Social Security was designed to redistribute income from those with higher lifetime earnings to those with lower lifetime earnings. The reason is obvious: the system was created to ensure an adequate retirement income for the elderly. Less obvious is how Social Security's many provisions...
Congress Spends More to Increase Number of Uninsured
Congress continues to let the cost of a tax subsidy grow without bound. Perhaps one day Congress will take on the broader issue of entitlement reform, forcing all entitlement programs to go through some of the hurdles required of discretionary programs. Then those programs would be allowed to...
Health Savings Accounts and Tax Preferences for High Deductible Policies Purchased in the Non-Group Market
This testimony was presented before the the House Small Business Subcommittee on Workforce, Empowerment, and Government Programs. Linda Blumberg addresses Health Savings Accounts (HSAs) and HR 3901, a proposal to make private non-group premiums for the high-deductible health plans associated...
Should the President's Tax Cuts be Made Permanent?
This paper examines the economic impacts of the Bush Administration's proposal to make its recent tax cuts permanent. Making the tax cuts permanent would be regressive and would dig a fiscal hole over the next 75 years that is as big as the combined social security and medicare trust fund...
President Turns to IRS to Raise Levels of Math Education
The president's effort to "leave no child behind" has run into opposition on a variety of fronts. The Congress complained that the money was too little, insisted that the president spend less to reduce the deficit, and then passed the Omnibus Reconciliation and Giveaway Acts of 2003 and 2004. In...