Dynamic score-keeping -- the recording of budget feedback effects as people react to government actions such as tax cuts -- is a hot topic again, fueled in part by the recent release of a Congressional Budget Office study of the revenue effects of the president's tax proposals. The topic is also...
State tax revenues were $32 billion lower in 2002 than in 2001, the first year over year revenue decline in recent history.1 Since then, budget conditions have deteriorated further, with an aggregate budget gap of $49 billion in 2003, according to the National Conference of State Legislators....
The three largest federal income-support programs for low-income households are the Earned Income Tax Credit (EITC), food stamps, and Temporary Assistance to Needy Families (TANF). While TANF and food stamps are traditional spending programs, the EITC provides more than $30 billion each year...
In its fiscal year 2004 budget, the Bush administration proposes to create a new set of tax-preferred accounts that would expand opportunities and consolidate rules for tax-advantaged saving. The initial reaction to the proposal was not particularly positive. Despite its uncertain prospects, the...
The corporate income tax has been in steady decline since World War II, reaching record lows during the recessions of the early 1980s and approaching those lows again in 2002.
[Charleston (WV) Sunday Gazette Mail] The growing complexity of the income tax, proposed tax-free "savings accounts," and expansions of tax loopholes are poisoning the income tax and creating a consumption tax by default.
The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 back-loaded many of its provisions. For example, EGTRRA reduces the top income tax rate from 38.6 percent currently to 37.6 percent in 2004 and 35 percent in 2006. The future income tax cuts scheduled under EGTRRA have...
The Enron debacle had potential implications in three areas of tax policy: tax-favored retirement plans, stock options, and differences in book versus tax accounting. The most important issue relates to the increasing riskiness of retirement plans that (1) can pay in a lump sum amount, (2) are...
It happens every time. An administration puts forward an economic package, and then suggests all the wonderful things it is going to do for the economy and for the public. Few costs. Few trade-offs. Win-win. Then opponents start picking apart the pieces. But then they play the same game. We can...
The release of the Congressional Budget Office's new baseline budget projections on January 29, 2003 offers the opportunity to reassess the fiscal status of the federal government as Congress and the administration consider a new set of budget proposals. This article examines the current budget...
Score-Keeping and Spending
Dynamic score-keeping -- the recording of budget feedback effects as people react to government actions such as tax cuts -- is a hot topic again, fueled in part by the recent release of a Congressional Budget Office study of the revenue effects of the president's tax proposals. The topic is also...
State Tax Reaction Differs From Early 1990s Downturn
State tax revenues were $32 billion lower in 2002 than in 2001, the first year over year revenue decline in recent history.1 Since then, budget conditions have deteriorated further, with an aggregate budget gap of $49 billion in 2003, according to the National Conference of State Legislators....
EITC Reaches More Eligible Families Than TANF, Food Stamps
The three largest federal income-support programs for low-income households are the Earned Income Tax Credit (EITC), food stamps, and Temporary Assistance to Needy Families (TANF). While TANF and food stamps are traditional spending programs, the EITC provides more than $30 billion each year...
The Administration's Savings Proposals
In its fiscal year 2004 budget, the Bush administration proposes to create a new set of tax-preferred accounts that would expand opportunities and consolidate rules for tax-advantaged saving. The initial reaction to the proposal was not particularly positive. Despite its uncertain prospects, the...
The Corporate Income Tax In the Post-War Era
The corporate income tax has been in steady decline since World War II, reaching record lows during the recessions of the early 1980s and approaching those lows again in 2002.
Bush Launches Stealth Attack on Income Tax
[Charleston (WV) Sunday Gazette Mail] The growing complexity of the income tax, proposed tax-free "savings accounts," and expansions of tax loopholes are poisoning the income tax and creating a consumption tax by default.
Future Income Tax Cuts From the 2001 Tax Legislation
The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 back-loaded many of its provisions. For example, EGTRRA reduces the top income tax rate from 38.6 percent currently to 37.6 percent in 2004 and 35 percent in 2006. The future income tax cuts scheduled under EGTRRA have...
The Enron Debacle
The Enron debacle had potential implications in three areas of tax policy: tax-favored retirement plans, stock options, and differences in book versus tax accounting. The most important issue relates to the increasing riskiness of retirement plans that (1) can pay in a lump sum amount, (2) are...
This Is Not Your Daddy's Recession
It happens every time. An administration puts forward an economic package, and then suggests all the wonderful things it is going to do for the economy and for the public. Few costs. Few trade-offs. Win-win. Then opponents start picking apart the pieces. But then they play the same game. We can...
Perspectives on the Budget Outlook
The release of the Congressional Budget Office's new baseline budget projections on January 29, 2003 offers the opportunity to reassess the fiscal status of the federal government as Congress and the administration consider a new set of budget proposals. This article examines the current budget...