State and Local Issues: TaxVox

The Case of Oregon’s Bicycle Excise Tax

Or: If you like it, then you might just pay a tax on it.
Oregon, one of five states with no sales tax, just passed an excise tax on bicycles to help fund trail maintenance and improvement. That decision generated a good bit of controversy, and as a bicycle-riding, trail-loving taxpayer, I wondered why a bicycle tax that supports bicycle trail use is so contentious.
August 2, 2017Renu Zaretsky
: Daily Deduction

Everything old is new again.

Will tax reform be bipartisan? Forty-five of the Senate’s 48 Democrats sent a letter to the GOP leadership offering to work together on a tax bill.
August 2, 2017Renu Zaretsky
Federal Budget and Economy: Commentary

Can Republicans Thread the Needle on Tax Policy?

Bill Gale discusses the current tax reform initiatives by Congress and the Administration and outlines some issues Republicans may face when trying to pass tax legislation in this Real Clear Markets article , originally posted on July 28, 2017.
August 2, 2017William G. Gale
Campaigns, Proposals, and Reforms: TaxVox

The Vast Gulf Between Democrats And Republicans Over Tax Legislation

Senate Democrats today reached out, after a fashion, to their Republican colleagues over tax reform. They said they’d be willing to work on bipartisan legislation...
August 1, 2017Howard Gleckman
: TaxVox

Three Questions Policymakers Should Be Asking About The Foxconn Megadeal

Last week, President Trump and Wisconsin Governor Scott Walker announced that Taiwanese manufacturer Foxconn, a major supplier of LCD screens to Apple, would receive $3...
August 1, 2017Megan Randall
: Daily Deduction

A Tax Plan in the Fall, Maybe

When will we see tax legislation? Marc Short predicts there will be a tax a bill on the House floor in October and Senate floor in November.
August 1, 2017Renu Zaretsky
Individual Taxes: TaxVox

Who Benefits From The Zero Percent Tax Bracket For Capital Gains And Dividends?

Like other forms of income, long-term capital gains and qualified dividends are taxed at graduated rates. Long-term capital gains and qualified dividends, however, receive preferential...
July 31, 2017Daniel BergerDevin Gould
: Daily Deduction

Deadlines, Demand, Dope and Drinks

A different D-Day: September 29? Treasury Secretary Steven Mnuchin told Congress Friday that it will have to increase the debt ceiling by September 29. Not only will it be the last regular workday before the end of the fiscal year, it is the day Treasury estimates the government will run out of money to pay its bills, including interest on its debt.
July 31, 2017Renu Zaretsky
Unlike all other OECD countries, which levy VATs at rates ranging from 5 to 27 percent (ignoring subnational rates), the US has no VAT.
July 31, 2017
Business Taxes: Brief

Potential Linkages between a U.S. Carbon Tax and the Earned Income Tax Credit

This brief summarizes, individually and jointly, an excise tax on carbon and an expansion of EITC benefits to childless workers. We find that although in principle a carbon tax that lowers wages could affect EITC benefits and thus impact low-to-moderate income households, the likely magnitude of
July 31, 2017Aparna MathurAdele C. Morris
Campaigns, Proposals, and Reforms: Research report

A U.S. Carbon Tax and the Earned Income Tax Credit

An Analysis of Potential Linkages
This paper examines, individually and jointly, an excise tax on carbon and an expansion of EITC benefits to childless workers. We estimate how an illustrative tax of $32 per ton of CO2 from fossil fuel combustion would burden households differentially across the income distribution, how it could
July 31, 2017Aparna MathurAdele C. Morris
: Daily Deduction

“A plan, a plan, my kingdom for a plan….”

Where will the health bill go from here? Early this morning, the GOP-controlled Senate failed once again to pass a replacement for the Affordable Care Act.
July 28, 2017Renu Zaretsky
Campaigns, Proposals, and Reforms: TaxVox

White House and Hill GOP Leaders Kill The Border Tax, But Disclose Few Other Tax Bill Details

In a joint statement , top Trump Administration officials and congressional Republican leaders formally announced what most observers have known for months: The destination-based cash...
July 27, 2017Howard Gleckman
Individual Taxes: TaxVox

TPC’s New Podcast, Taxology, Explores The Laffer Curve

If you want to get tax economists riled up, there’s no better topic than the “Laffer Curve.” Even after decades of controversy, it underlies many...
July 27, 2017Yifan Powers
: TaxVox

A New Dynamic Analysis Confirms Estimates That A Trump-Like Tax Plan Would Add Trillions To the Deficit

A new “dynamic” analysis (one that includes macroeconomic effects) finds that tax cuts consistent with what the Trump Administration outlined in April would reduce federal...
July 27, 2017Benjamin R. Page
: Daily Deduction

The times… are they changing?

“Come gather round people, wherever you roam.” Having failed to pass either Majority Leader Mitch McConnell’s replacement for the Affordable Care Act or a bill to repeal the law now and replace it in two years, the Senate now moves on to Plan C—a long series of floor amendments from which McConnell will try to assemble a final bill.
July 27, 2017Renu Zaretsky
: Daily Deduction

A Motion to Proceed passes, but where to now?

“Skinny” is as “skinny” does. Yesterday, with Vice President Pence’s tie-breaking vote, the Senate agreed to debate how it would change the Affordable Care Act. But what bill, if any, will pass? Repeal now and replace later?
July 26, 2017Renu Zaretsky
: TaxVox

Outside Research Organizations Can’t Replace CBO’s Budget Team

The House Freedom Caucus wants to eliminate the Budget Analysis Division at the Congressional Budget Office and rely on outside research organizations, including the Urban...
July 25, 2017Donald Marron
: Daily Deduction

“Let’s call the whole thing off?”

“Things have come to a pretty pass…” There’ll be a vote today on… something. The Senate plans to vote on legislation to repeal or repeal and replace the Affordable Care Act today.
July 25, 2017Renu Zaretsky
: Daily Deduction

Perception, Politics, Reality, and Revenue

Scrap the ACA’s NIIT and GOP tax reform gets easier. Why? TPC’s Howard Gleckman explains the math (and the politics) behind repealing the Affordable Care Act’s 3.8 percent Net Investment Income Tax.
July 24, 2017Renu Zaretsky
Using 2013 dollars, the average income for the top 1 percent was $355,000 in 1979, nearly $1.5 million in 2007, and over $1 million in 2013.
July 24, 2017
: Daily Deduction

"Pick yourself up, dust yourself off, start all over again."

“Nothing’s impossible, I have found…” The Senate may have revived its effort to repeal and replace the Affordable Care Act with yet another version of the Better Care Reconciliation Act.
July 21, 2017Renu Zaretsky
Individual Taxes: TaxVox

Yes, Killing The ACA’s Investment Tax Now Would Make The Next GOP Tax Bill Easier. Here's Why

The chaos surrounding Senate efforts to replace the Affordable Care Act will prolong the debate over what Republicans will do about the nearly $1 trillion...
July 20, 2017Howard Gleckman
: Daily Deduction

Tax Reform To-Dos

Advice for tax reformers. TPC Director Mark Mazur testified before the Senate Finance Committee this week, joining three other former assistant Treasury secretaries for tax policy.
July 20, 2017Renu Zaretsky
: TaxVox

My Advice To The Senate Finance Panel About Tax Reform

On July 18, four former assistant Treasury secretaries for tax policy testified before the Senate Finance Committee on the prospects and challenges of achieving tax...
July 19, 2017Mark J. Mazur