The current economic downturn has resulted in a sharp decline in state tax revenues. Forty-six states faced budget shortfalls when passing their fiscal year (FY) 2011 budgets, and 17 states reported shortfalls of more than 20 percent. According to the National Association of State Budget...
As the US housing market experiences its largest contraction since the Great Depression, the Lincoln Institute of Land Policy and the Urban-Brookings Tax Policy Center took a closer look at the consequences of this crisis for state and local governments in a May 2010 conference.This article...
The U.S. 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/or tax increases. This...
The Bipartisan Tax Fairness and Simplification Act of 2010 ("Wyden-Gregg," introduced as S. 3018) is a broad reform of the federal income tax system. Some provisions would also expand the Social Security payroll tax base. This paper presents the Tax Policy Center's estimates of the revenue and...
Personal income tax systems vary widely across states, leading to different levels of progressivity. Forty-three states and the District of Columbia have an individual income tax. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming do not tax personal income, while New...
This article, written for a lay audience, discusses the causes and consequences of catastrophic budget failure. When Americas ballooning federal debt becomes unmanageable, we might simply refuse to honor our obligations, triggering a worldwide financial collapse and an economic downtown that...
Ted Gayer testified before the Senate Energy Committee that a carbon tax is the most economically efficient way to address climate change. While it might be politically unpopular, he says, it is well worth considering because it helps generate public revenues that can be used to offset...
The Washington Post. The economy's expansion last quarter, for the first time in more than a year, has prompted much speculation that the recession is over. This turning point, however, simply marks an end to the decline in activity.
Many taxpayers must calculate their federal income tax liability under two sets of rules: those applying to the regular income tax and those of the alternative minimum tax. If a taxpayer owes more tax under the alternative rules, then the difference is paid as AMT. The AMT hits people in some...
This paper reviews recent economic events and their impact on U.S. fiscal performance and prospects. We highlight the historic nature of the 2009 budget outcomes, the unsustainability of plausible ten-year budget projections, and the increasingly dire long-term fiscal problem. These conditions...
State Revenue Responses to Fiscal Shortfalls
The current economic downturn has resulted in a sharp decline in state tax revenues. Forty-six states faced budget shortfalls when passing their fiscal year (FY) 2011 budgets, and 17 states reported shortfalls of more than 20 percent. According to the National Association of State Budget...
What the Housing Crisis Means for State and Local Governments
As the US housing market experiences its largest contraction since the Great Depression, the Lincoln Institute of Land Policy and the Urban-Brookings Tax Policy Center took a closer look at the consequences of this crisis for state and local governments in a May 2010 conference.This article...
A Value-Added Tax for the United States: Part of the Solution
The U.S. 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/or tax increases. This...
Preliminary Revenue Estimates and Distributional Analysis of the Tax Provisions in the Bipartisan Tax Fairness and Simplification Act of 2010
The Bipartisan Tax Fairness and Simplification Act of 2010 ("Wyden-Gregg," introduced as S. 3018) is a broad reform of the federal income tax system. Some provisions would also expand the Social Security payroll tax base. This paper presents the Tax Policy Center's estimates of the revenue and...
State Individual Income Tax Rates
Personal income tax systems vary widely across states, leading to different levels of progressivity. Forty-three states and the District of Columbia have an individual income tax. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming do not tax personal income, while New...
Countdown to Catastrophe
This article, written for a lay audience, discusses the causes and consequences of catastrophic budget failure. When Americas ballooning federal debt becomes unmanageable, we might simply refuse to honor our obligations, triggering a worldwide financial collapse and an economic downtown that...
On the Merits of a Carbon Tax
Ted Gayer testified before the Senate Energy Committee that a carbon tax is the most economically efficient way to address climate change. While it might be politically unpopular, he says, it is well worth considering because it helps generate public revenues that can be used to offset...
What's blocking the recovery
The Washington Post. The economy's expansion last quarter, for the first time in more than a year, has prompted much speculation that the recession is over. This turning point, however, simply marks an end to the decline in activity.
AMT Coverage by State, 2007
Many taxpayers must calculate their federal income tax liability under two sets of rules: those applying to the regular income tax and those of the alternative minimum tax. If a taxpayer owes more tax under the alternative rules, then the difference is paid as AMT. The AMT hits people in some...
An Update on the Economic Crisis and the Fiscal Crisis: 2009 and Beyond
This paper reviews recent economic events and their impact on U.S. fiscal performance and prospects. We highlight the historic nature of the 2009 budget outcomes, the unsustainability of plausible ten-year budget projections, and the increasingly dire long-term fiscal problem. These conditions...