Campaigns, Proposals, and Reforms: TaxVox

How Tax Policy Can Promote Opportunity for All, And Not Just The Few

Elected officials love to talk about expanding opportunity in America, but few do anything about it. And in a recent report I found that spending for those federal programs that do aim to promote opportunity for all, such as work incentives and support for education, are on a path to shrink as a share of government resources.
April 28, 2016C. Eugene Steuerle
: Daily Deduction

Papers, Preparing for Tax Reform, and the Price of Leaving

Formal Panama “papers” make it official. Panama has formally signed an agreement with the US to combat tax evasion. It is one of 112 jurisdictions that has such a pact under the Foreign Account Tax Compliance Act. Brady gets tax reform ready for 2017 . Ways and Means chairman Kevin Brady is
April 28, 2016Renu Zaretsky
: Daily Deduction

Immediate, Urgent, and Delayed Actions

For Puerto Rico, the time to act is now… Or not? Treasury Secretary Jack Lew told Univision that Congress is running out of time to address the island’s debt crisis. Puerto Rico could fail to pay $422 million debt service on May 1 and another $2 billion on July 1. Lew wants Congress to move quickly
April 27, 2016Renu Zaretsky
Business Taxes: TaxVox

No, Value-Added Taxes are Not Bad for Small Business

Value-added taxes (VATs) have been attracting growing attention in the United States. GOP presidential hopeful Ted Cruz has proposed a VAT as part of a sweeping tax reform plan . The idea has also been backed by House Speaker Paul Ryan (R-WI), Senator Ben Cardin (D-MD), and others . There are many
April 27, 2016William G. Gale
Federal Budget and Economy: Brief

Prioritizing Opportunity for All in the Federal Budget: Executive Summary

Many elected officials emphasize reforms that would promote opportunity, but until they define how success would be measured, progress is unlikely. The federal government is scheduled to spend close to $15,000 more per household annually in another 10 years, but little of that increase goes to
April 27, 2016C. Eugene Steuerle
Federal Budget and Economy: Research report

Prioritizing Opportunity for All in the Federal Budget: A Key to Both Growth in and Greater Equality of Earnings and Wealth

Many elected officials emphasize reforms that would promote opportunity, but until they define how success would be measured, progress is unlikely. The federal government is scheduled to spend close to $15,000 more per household annually in another 10 years, but little of that increase goes to
April 27, 2016C. Eugene Steuerle
Business Taxes: TaxVox

A Broader Perspective on Corporate Tax Reform

Just about everyone wants to redesign the corporate tax, but there is little agreement among lawmakers or policy analysts on how to pay for such a reform. At a Senate Finance Committee hearing today , Tax Policy Center co-director Eric Toder urged lawmakers to think beyond the traditional cut-the-rates, broaden-the-base solution.
April 26, 2016Howard Gleckman
Individual Taxes: TaxVox

Sanders is right: Philadelphia’s proposed soda tax is regressive though fairly small

Last month, Philadelphia became the latest city to propose taxing soda and other sugar-sweetened beverages. Such taxes have become popular as more evidence links sugar consumption to poor health and greater health expenditures .
April 26, 2016
: Daily Deduction

Business Tax Reform, a Federal VAT, and Good Bets

The Senate Finance Committee discusses business tax reform this morning. The panel’s hearing at 11am will feature testimony from TPC’s Eric Toder, Tom Barthold of the Joint Committee on Taxation, Jim Hines of the University of Michigan, CPA Sanford Zinman , and Gayle Goschie of Goschie Farms. Ron
April 26, 2016Renu Zaretsky
Campaigns, Proposals, and Reforms: Testimony

Approaches to Business Tax Reform

Testimony before the US Senate Committee on Finance
Institute fellow Eric Toder testified before the US Senate Committee on Finance during a hearing entitled “Navigating Business Tax Reform.” In his testimony, Toder presented his research on the state of the corporate income tax and a review of current legislative proposals. He outlines two
April 26, 2016Eric Toder
: Daily Deduction

Fraud, Blacklists, and Prices

On the Hill this week. The House Ways & Means Committee will mark up legislation on tax refund fraud and civil asset forfeiture this week. The Senate Finance Committee will hold a hearing on business tax reform tomorrow . TPC’s Eric Toder will be among the witnesses. On Wednesday, the House
April 25, 2016Renu Zaretsky
: Daily Deduction

Moves, Ideas, a Majority, and McDonald’s

Johnson Controls moves ahead with its move… The Milwaukee based company still plans to change its mailing address to Ireland after closing its deal with Tyco International, Treasury’s new inversion-curbing rules notwithstanding. The transaction, set to be completed in September, could yield $150
April 22, 2016Renu Zaretsky
Campaigns, Proposals, and Reforms: TaxVox

Governor Kasich: Tell Us Your Tax Ideas

Yesterday, GOP presidential hopeful John Kasich told The Washington Post editorial board that he should be elected because he is the candidate of ideas. “See, I am a fundamental believer in ideas. If you don’t have ideas, you got nothing. ” At least when it comes to taxes, GOP rivals Ted Cruz and
April 21, 2016Leonard E. Burman
: Daily Deduction

Schemes, Hamilton, Tubman, and Time

The US has launched an inquiry into Panama Paper-related tax schemes. The US attorney for the Southern District of New York, Preet Bharara, wants to speak with an employee of the International Consortium of Investigative Journalists about the law firm data leak behind the Panama Papers. Alexander
April 21, 2016Renu Zaretsky
Individual Taxes: Research report

Effects of a Federal Value-Added Tax on State and Local Budgets

A longstanding concern of state and local governments is that a federal value-added tax (VAT) could shrink sales tax bases. But a federal VAT could have even bigger effects on other revenues and spending through changes in incomes, relative prices, and asset values. To illustrate the range of
April 21, 2016James R. NunnsEric Toder
: Daily Deduction

Tax Fraud, Tax Cut Flaws, and Tax Incentives

On the Hill. Today the Senate Finance Committee will consider a bill to prevent identity theft and tax refund fraud, and the House Ways & Means Committee will mark up trade legislation . Yesterday the Senate voted to reauthorize the Federal Aviation Administration, and included the passenger
April 20, 2016Renu Zaretsky
Individual Taxes: TaxVox

Congress May Be About To Miss a Chance to Fix A Tax Prep Problem

The Senate Finance Committee is about to miss an opportunity to fix a problem Congress has been complaining about for years. Tomorrow, the panel is planning to mark up a multi-part IRS bill . But it will leave out an important provision that would allow the agency to set minimum standards for paid
April 19, 2016Howard Gleckman
Individual Taxes: TaxVox

President Obama’s 2015 Income Tax Return

Like millions of other Americans, President and Mrs. Obama filed their 2015 tax return shortly before yesterday’s deadline. Unlike most of us, they also posted their return on the White House website for everyone to see. In many ways, their return paints a picture of a typical high-income working
April 19, 2016Roberton C. Williams
: Daily Deduction

Preparers, Risk, Rules, and a Revision

No help for IRS efforts to regulate tax preparers. The Senate Finance Committee will consider taxpayer protection bills but Chairman Orrin Hatch’s draft excludes a provision to give the IRS the authority to regulate tax preparers. The GOP has long opposed the provision, while IRS Commissioner John
April 19, 2016Renu Zaretsky
: TaxVox

Tax Day From The Trenches: How the IRS Handles Identity Theft

The IRS and the Justice Department are working hard to combat stolen identity return fraud. But one important security tool is making life needlessly complicated for many tax filers. To curb fraud, the IRS issues Identity Protection Personal Identification Numbers, or IP PINs to victims of identity
April 18, 2016Ellen Steele
: Daily Deduction

It’s officially Tax Day, and everybody’s talking reform.

Corporate tax reform talks continue—will there be reform in 2016? Senate Majority Leader Mitch McConnell opposes the effort and would rather see a comprehensive overhaul in 2017. The House Freedom Caucus has no interest in a bipartisan deal . But House Ways & Means Chairman Kevin Brady and
April 18, 2016Renu Zaretsky
State and Local Issues: TaxVox

A Closer Look at the State and Local Tax Deduction

Recent federal tax reform proposals reflect strikingly different visions for future revenue policy. But they have one feature in common: Nearly all would eliminate or limit existing tax preferences, including the federal deduction for state and local taxes (SALT). Eliminating that deduction is not
April 15, 2016Frank Sammartino
: Daily Deduction

Methodology, Service, Saving, and Coffee

How much revenue would Bernie Sanders’s proposed financial transaction tax really generate? TPC’s figures about $52 billion over 10 years, while Pollin, Heintz, and Herndon (PHH) estimate nearly six times that, or $300 billion. TPC took a close look at the PHH methodology to understand the
April 15, 2016Renu Zaretsky
Campaigns, Proposals, and Reforms: TaxVox

The Best—And Worst—Tax Ideas of the 2016 Presidential Campaign

It is only April and we have heard presidential candidates propose some of the biggest and most ambitious tax plans i n modern US history. Donald Trump is proposing the largest tax cut ever, and Ted Cruz is not far behind. Bernie Sanders has proposed the biggest tax increase since World War II. But
April 14, 2016Howard Gleckman
: Daily Deduction

Hearings, Symbols, and Tax Liabilities

On the Hill. This morning, the House Ways & Means Committee will hold a hearing on the tax treatment of health care . The panel’s Subcommittee on Trade will hold a hearing today on the “ Miscellaneous Tariff” bill introduced yesterday . Ways & Means also approved four bills that would place
April 14, 2016Renu Zaretsky