The testimony discusses the usefulness of dynamic analysis and dynamic scoring for the policymaking process. Burman concludes that dynamic scoring is not feasible because of lack of knowledge about how deficits will be offset, uncertainty about key parameters in economic models, and inherent...
The Economic Growth and Taxpayer Relief Reconciliation Act of 2001 (EGTRRA) phased out the state death tax credit from 2002 to 2004, eliminating it completely for 2005. Prior to EGTRRA, almost all states collected a "pick-up" tax that was equivalent to the federal credit. In 2000, estate and...
Under current law, there are three major tax credits that affect families with children: the earned income tax credit, the child and dependent care tax credit, and the child tax credit.
There are numerous tax incentives for the oil and gas industry, many of which are designed to encourage exploration and energy production. Both the amount and the value of the incentives have increased in recent years. Economists believe it is generally bad policy to favor one industry or one...
No issue has stumped policymakers more than how to provide healthcare to its citizens in an efficient and fair manner. Every recent health "fix" has involved trying to buy health reform by devoting even more dollars to it. In simply throwing more money into the system, they add to, rather than...
When President Bush announced his appointment of Henry Paulson of Goldman Sachs as Treasury Secretary, the press quickly popped the obvious question to former Treasury officials like me: "Why would he want to be secretary, especially this late in a president's tenure?"
In this commentary, Len Burman offers a radical proposal: use the tax system to bring in tax revenues and spending programs to provide the social safety net.
The Tax Increase Prevention and Reconciliation Act of 2005 will extend the low tax rates on capital gains and dividends through 2010, grant temporary relief from the individual alternative minimum tax through 2006, and extend several expiring business tax breaks. To prevent Senators from raising...
The United States raises less tax revenue as a percentage of gross domestic product (GDP) than most other countries in the Organization for Economic Co-operation and Development (OECD). In 2003, taxes in the United States, including all levels of government, amounted to 25.6 percent of GDP,...
Citizens pay an overall marriage penalty when their combined social welfare benefits less taxes are lower when they are a married couple than when they are two single individuals. Because marriage is optional, marriage penalties or subsidies are assessed primarily for taking wedding vows, not...
Dynamic Analysis and Scoring
The testimony discusses the usefulness of dynamic analysis and dynamic scoring for the policymaking process. Burman concludes that dynamic scoring is not feasible because of lack of knowledge about how deficits will be offset, uncertainty about key parameters in economic models, and inherent...
State-Level Estate and Inheritance Taxes
The Economic Growth and Taxpayer Relief Reconciliation Act of 2001 (EGTRRA) phased out the state death tax credit from 2002 to 2004, eliminating it completely for 2005. Prior to EGTRRA, almost all states collected a "pick-up" tax that was equivalent to the federal credit. In 2000, estate and...
Growth and Decline in Tax Credits For Families With Children
Under current law, there are three major tax credits that affect families with children: the earned income tax credit, the child and dependent care tax credit, and the child tax credit.
Tax Incentives for Energy Production
There are numerous tax incentives for the oil and gas industry, many of which are designed to encourage exploration and energy production. Both the amount and the value of the incentives have increased in recent years. Economists believe it is generally bad policy to favor one industry or one...
Can We Buy Our Way to Health Reform?
No issue has stumped policymakers more than how to provide healthcare to its citizens in an efficient and fair manner. Every recent health "fix" has involved trying to buy health reform by devoting even more dollars to it. In simply throwing more money into the system, they add to, rather than...
Paulsonibilities
When President Bush announced his appointment of Henry Paulson of Goldman Sachs as Treasury Secretary, the press quickly popped the obvious question to former Treasury officials like me: "Why would he want to be secretary, especially this late in a president's tenure?"
Tax and Spend
In this commentary, Len Burman offers a radical proposal: use the tax system to bring in tax revenues and spending programs to provide the social safety net.
Roth Conversions as Revenue Raisers: Smoke and Mirrors
The Tax Increase Prevention and Reconciliation Act of 2005 will extend the low tax rates on capital gains and dividends through 2010, grant temporary relief from the individual alternative minimum tax through 2006, and extend several expiring business tax breaks. To prevent Senators from raising...
The U.S. Tax Burden Is Low Relative to Other OECD Countries
The United States raises less tax revenue as a percentage of gross domestic product (GDP) than most other countries in the Organization for Economic Co-operation and Development (OECD). In 2003, taxes in the United States, including all levels of government, amounted to 25.6 percent of GDP,...
The Widespread Prevalence of Marriage Penalties
Citizens pay an overall marriage penalty when their combined social welfare benefits less taxes are lower when they are a married couple than when they are two single individuals. Because marriage is optional, marriage penalties or subsidies are assessed primarily for taking wedding vows, not...