Federal Budget and Economy: TaxVox

Could We Get the Tax Code Down to Three Pages? Why Would We Want To?

Republican presidential candidates say they want to slash the tax code. It is too big, too complicated, and too laden with provisions to help special interests. They are right. But in today’s world, cutting the statute to a few pages would only result in ceding massive new authority to the Treasury
November 12, 2015Howard Gleckman
: Daily Deduction

“To make money you have to spend money…”

A computing giant’s merger plans might attract IRS scrutiny. Dell wants to thread the needle of US tax laws to purchase storage company EMC. Dell would purchase EMC stock with a mix of cash and tracking shares in a business unit of EMC. Tracking stocks allow shareholders to participate in the
November 12, 2015Renu Zaretsky
Federal Budget and Economy: TaxVox

The GOP Debate: Squabbles Over Refundable Credits, Deductions, and Conservatisim

Last night’s GOP presidential debates ( here’s a transcript of the main event) highlighted some important tax policy contrasts among the candidates. One thought refundable credits are conservative economic policy while another did not. Nearly all would preserve deductions for mortgage interest and
November 11, 2015Howard Gleckman
: Daily Deduction

Elaboration, Exaggeration, and Reconciliation?

About last night… GOP presidential candidates used last night's debates as an opportunity to tout the highlights of their tax plans. Kentucky Senator Rand Paul questioned Florida Senator Marco Rubio's conservative credentials for Rubio's plan to expand the child tax credit. Jeb Bush promised to
November 11, 2015Renu Zaretsky
Federal Budget and Economy: TaxVox

Should governments tax products that are fun but harmful?

Should you face an extra tax if you drink soda? Eat potato chips? Uncork some wine? Light up a cigarette or joint? Toast yourself in a tanning booth? Many governments think so. Mexico taxes junk food. Berkeley taxes sugary soft drinks. Countless governments tax alcohol and tobacco. Several states
November 10, 2015Donald Marron
: Daily Deduction

A Debate, A New Plan, A Vote, and Two Mulligans

Who could forget: There’s another GOP debate tonight. This one is on the Fox Business channel. Moderators promise to stick to substantive economic issues. Speaking of substance, here’s your TPC cheat sheet on the candidates’ tax plans. The next Democratic debate will be Saturday night… live. Ben
November 10, 2015Renu Zaretsky
Individual Taxes: Working paper

Should We Tax Internalities Like Externalities?

Does the traditional rationale for taxing externalities also apply to internalities? Yes, if the goal is maximizing efficiency. Efficient taxes reflect any harms consumers overlook, whether to others or themselves. Yes with caution, if the goal also includes equity. Internality taxes fall most
November 10, 2015Donald Marron
: Research report

Simplifying Federal Student Aid: How Do the Plans Stack Up?

There is widespread agreement that the college financial aid system is too complicated and acts as a barrier to higher education. This report focusses on how eight different simplification proposals for determining Pell grant eligibility and three alternatives for calculating Effective Family
November 10, 2015Kim S. RuebenSarah GaultSandy Baum
: Brief

Simplifying Federal Student Aid: An Overview of Eight Plans

There is widespread agreement that the college financial aid system is too complicated and acts as a barrier to higher education. This brief focusses on how eight different simplification proposals for determining Pell grant eligibility and three alternatives for calculating Effective Family
November 10, 2015Kim S. RuebenSarah GaultSandy Baum
: Daily Deduction

Repeal, Reform, and Maybe Retaliation

On the Hill, a stronger push to repeal the Cadillac Tax? Senate Minority Leader Harry Reid and House Minority Leader Nancy Pelosi want to nix the 40 percent tax on high-cost health insurance plans, and 2015 may be their last chance to get it done. Will they add a repeal to the “tax extender”
November 9, 2015Renu Zaretsky
: Daily Deduction

“Looks like we made it…”

The House passed its highway bill. It voted yesterday to approve the $325 billion measure. The bill includes reauthorization of the Export-Import Bank until 2019. It also authorizes infrastructure funding for six years, but only if Congress can come up with offsets for the second three years. The
November 6, 2015Renu Zaretsky
: Daily Deduction

“Keep movin’, movin’, movin’, though they’re disapprovin'…”

The House Steering Committee choice for Ways & Means Chair is (drumroll, please) Kevin Brady. The Republican from Texas beat out Pat Tiberi of Ohio. The House GOP conference could ratify the choice in a special meeting today. Tiberi had hoped to win the post based on his fundraising ability,
November 5, 2015Renu Zaretsky
State and Local Issues: TaxVox

2015 Ballot Measure Results: Tax cuts, yes; marijuana, sometimes

Last Friday I ran down four key tax-related ballot measures . On Election Day, voters in Washington, Texas, Ohio, and Colorado spoke: They like tax cuts but still have questions about legal marijuana. Washington: Make future tax hikes (nearly) impossible or cut taxes now That's slightly hyperbolic
November 4, 2015Richard C. Auxier
Federal Budget and Economy: TaxVox

Tax Reform Is Possible, But It Won’t be Easy

At a Tax Policy Center conference on tax reform yesterday, Jason Furman, the chair of the President’s Council of Economic Advisors, said that a major rewrite of the tax code would make little progress until Congress breaks the current impasse over the treatment of pass-throughs-- firms such as
November 4, 2015Howard Gleckman
Individual Taxes: TaxVox

The Case of the Questionable Tax Incentive: Women and Retirement Savings

Twenty years ago, I turned 25 and earned my first raise. My older sister gave me some great advice: “When you get a raise always...
November 4, 2015Renu Zaretsky
: Daily Deduction

“Take me home, bumpy road…”

Another bumpy stretch for the highway bill… House Transportation and Infrastructure Committee chairman Bill Shuster just can’t wait to go through 280 amendments to the $325 billion highway bill. Democrats will try to make sure the six-year, funded-for-three-years, bill does not tap revenue from
November 4, 2015Renu Zaretsky
Campaigns, Proposals, and Reforms

How do we get to tax reform? Lessons from the Bush Panel

Featuring keynote remarks by Chairman of the Council of Economic Advisers Jason Furman A good tax system raises the revenues needed to finance government spending in a manner that is as simple, equitable, and growth-friendly as possible. Everyone agrees the U.S. tax system could be improved.
November 3, 2015
: Daily Deduction

Let's Make a Deal...

Budget deal, done deal. The President signed the budget deal yesterday. The two-year measure keeps the government open and prevents a debt default. The agreement lifts spending caps and extends the debt limit until 2017. As for a deal on highways… Speaker Ryan named highway funding as a top
November 3, 2015Renu Zaretsky
Individual Taxes: TaxVox

The IRS Could Improve EITC Compliance by Regulating Tax Preparers

Tax preparers play a critical role helping low income working families collect benefits from the Earned Income Tax Credit. Almost 60 percent of families claiming the EITC in 2010 and 2011 did so with the help of a paid preparer. Unfortunately, preparers can make costly mistakes—errors the taxpayer
November 2, 2015Elaine Maag
: Daily Deduction

Tax Credits: Taking credit before credit’s due?

The angel investor tax credit: A tarnished halo? In Minnesota, a tax break for wealthy investors in start-up companies helped generate 579 jobs between 2010 and 2014. But it cost state taxpayers $60 million, or $100,000 per job. Was it worth it? The angel investor tax credit expires next year—when
November 2, 2015Renu Zaretsky
Federal Budget and Economy: TaxVox

Bipartisan tax reform is possible: Lessons learned from President Bush’s reform panel

It is presidential primary season and once again the tax code is a punching bag for politicians on both sides of the aisle. Listen to their rhetoric and it’s easy to conclude that the tax policy differences in today’s hyperpartisan political environment are so great that reform is doomed. But it
November 1, 2015Jonathan AckermanRosanne AltshulerJeffrey Kupfer
State and Local Issues: TaxVox

Election 2015: Americans vote this Tuesday and it matters

When most Americans talk about "the election" they either mean the presidential primaries beginning in February 2016 or the 374-days-away general election. However, voters are heading to the polls in some states this Tuesday and the consequences matter far more than whether Donald Trump or Ben
October 30, 2015Richard C. Auxier
: Daily Deduction

“Senators, congressmen, please heed the call… the times, they are a changin’…”

Officially elected: Speaker Paul Ryan. The former Ways & Means chairman won the election for Speaker of the House yesterday morning. He is the youngest to serve in that role in more than 100 years, and is the first Ways & Means chair to move directly to the Speakership. In his first speech
October 30, 2015Renu Zaretsky
Federal Budget and Economy: TaxVox

Would Speaker Ryan Boost the Chances for Tax Reform? Not Until 2018

Paul Ryan has been an enthusiastic supporter of tax reform for years. Will his elevation to House Speaker make reform more likely? Perhaps, but not any time soon. Reform efforts got two big boosts this week. The first was the GOPs decision to choose Ryan to lead the House. The second was outgoing
October 29, 2015Howard Gleckman
: Daily Deduction

"Your Money, Your Vote"

Did GOP candidates answer your tax questions in last night’s debate? TPC has a new presidential candidate tax plan scorecard that can fill in any blanks. The scorecard features the available tax plan information from 19 candidates—you can apply a filter to focus on your favorites. Soon to be
October 29, 2015Renu Zaretsky