Business Taxes: Research report

Value-Added Taxes and Small Business

The possibility of introducing a value-added tax (VAT) in the United States has been discussed on a sporadic basis for several decades. In this policy brief, which is based on Gale, Gelfond, and Krupkin (2015), we examine issues related to small business and entrepreneurship under a VAT. We also
March 1, 2016William G. GaleHilary GelfondAaron Krupkin
Business Taxes: Research report

Entrepreneurship and Small Business Under a Value-Added Tax

The possibility of introducing a value-added tax (VAT) in the United States has been discussed on a sporadic basis for several decades. This paper examines issues related to small business and entrepreneurship under a VAT. Section II discusses the basic mechanics of a VAT, including the important
March 1, 2016William G. GaleHilary GelfondAaron Krupkin
: Daily Deduction

Disputes, Development, Filing, and Fuel

On the line for Alphabet, Inc: $3.5 billion. Intel and the IRS are in court over some of the firm’s international tax practices, but the biggest winner in the dispute could be Google’s parent company. The Wall Street Journal reports (paywall) that at least 20 firms are watching the case, which
February 29, 2016Renu Zaretsky
Campaigns, Proposals, and Reforms

T16-0038 - Repeal Childless EITC, Baseline: Current Law, by Expanded Cash Income Percentile, 2015

February 29, 2016
Campaigns, Proposals, and Reforms

T16-0037 - Repeal Childless EITC, Baseline: Current Law, by Expanded Cash Income Level, 2015

February 29, 2016
Campaigns, Proposals, and Reforms: Brief

The Wisdom of a Carbon Tax

Surprisingly, a carbon tax could appeal to both liberals and conservatives
This paper reflects on changes in tax policy in past decades and predicts how tax policy may change under a new president in 2017. The author examines the potential of implementing a carbon tax as a means to raise government revenue and reduce carbon gas emissions.
February 29, 2016William G. Gale
: Daily Deduction

Returns, Attacks, and Impacts

Two GOP candidates release partial tax returns. Ted Cruz and Marco Rubio released summaries of their tax returns over the weekend. Rubio released Form 1040s for tax years 2010 to 2014, when his effective tax rate varied from 9.4 percent to 27.4 percent. Cruz released his 1040s for 2011 to 2014. His
February 28, 2016Renu Zaretsky
State and Local Issues: Brief

State Tax Incentives for Economic Development

State governments often use their tax system to partner with the private sector on economic development initiatives. A key part of their economic development strategy, states use tax incentives as one tool of economic development to compete with other states and globally for investment, jobs, and
February 28, 2016Norton Francis
State and Local Issues: Brief

State Financing Incentives for Economic Development

Access to financing is critical to businesses small and large looking to start new ventures, expand existing ones, or relocate facilities. When cost-effective financing is unavailable for worthy projects, state governments can and do step in to help. Governments use their power and their pocketbook
February 28, 2016Norton Francis
Business Taxes: Journal Article

Financial Transaction Taxes in Theory and Practice

We explore issues related to a financial transaction tax (FTT) in the United States. We trace the history and current practice of the tax in the United States and other countries, review evidence of its impact on financial markets, and explore the key design issues any such tax must address. We
February 26, 2016Leonard E. BurmanWilliam G. GaleSarah GaultBryan KimJames R. NunnsSteven M. Rosenthal
: Daily Deduction

Times get taxing for candidates…

In case you forgot, the GOP presidential candidates’ proposed tax cuts are unprecedented. Some might even call them “irresponsible.” Last night’s debate didn’t illuminate matters, though Donald Trump said he would pay for his entire plan and balance the budget by eliminating (1) the US Department
February 25, 2016Renu Zaretsky
Campaigns, Proposals, and Reforms: Panel

Tax Policy in 2016: What's New and What's Next

Taxes have returned to their traditional place of prominence in policy circles, with leading presidential candidates proposing both sweeping reforms and incremental changes. What role will tax policy play in the coming election? Can Congress act on important tax initiatives this year? Are we
February 25, 2016
: Daily Deduction

Caution: Fiscal Trouble Ahead

The US remains in world of fiscal trouble. And it’s getting worse. While short-term deficits have shrunk in recent years, the fiscal outlook has deteriorated , according to the latest from TPC’s Bill Gale and University of California at Berkeley’s Alan Auerbach. Federal debt held by the public will
February 24, 2016Renu Zaretsky
Federal Budget and Economy: Research report

Once More Unto the Breach

The Deteriorating Fiscal Outlook
After worsening sharply during the Great Recession, the long-term fiscal outlook generally improved through 2015, due to a combination of legislative acts and lower projected growth of health care spending. The same factors and the slow but steady economic recovery helped reduce short-term deficits
February 24, 2016William G. GaleAlan J. Auerbach
Federal Budget and Economy: TaxVox

Auerbach and Gale Find the U.S. Is Heading For a Fiscal Danger Zone

As you consider the lavish promises of various presidential candidates, here’s a bit of useful context: Even without the effects of promised tax cuts or new spending, the long-term fiscal outlook is grim. Increased spending for health care and Social Security driven largely by demographics, the
February 23, 2016Howard Gleckman
: Daily Deduction

Reform, Revenue, Exemptions and Viability

On the Hill. The House Ways & Means committee holds a hearing on international tax reform today. Meanwhile, the panel’s top Democrat, Sandy Levin, and top House Budget Committee Democrat Chris Van Hollen introduced a bill to make corporate inversions less appealing by curbing “earnings
February 23, 2016Renu Zaretsky
Federal Budget and Economy: TaxVox

How Should We Use the Revenue from Taxing Carbon?

A US carbon tax could raise $1 trillion or more in new revenue over the next decade. There is no shortage of ways to use it. Tax reformers want to cut business and personal taxes. Budget hawks want to reduce future deficits. Environmental advocates want to invest in clean energy. Progressives want
February 22, 2016Donald MarronAdele C. Morris
: Daily Deduction

A Budget, Carbon, Fuel, the Environment… and a Revolt

House Republicans say they may have a budget deal. After weeks of internal party battling, House GOP leaders say they may have found a way to get a budget passed. The plan, according to The Hill: Hard-liners would agree to retain the spending levels that former speaker John Boehner and the White
February 22, 2016Renu Zaretsky
Individual Taxes: Research report

Consensus Framework for Long-Term Care Financing Reform

The Long-Term Care Financing Collaborative, an ad hoc group representing a broad ideological spectrum of independent policy experts as well as representatives of consumer groups, the insurance industry, and service providers, has proposed major changes in the way long-term supports and services are
February 22, 2016Long-Term Care Financing Collaborative
Business Taxes: Brief

How to Use Carbon Tax Revenues

How should governments use the considerable revenue carbon taxes can raise? There are many options for cutting other taxes, increasing spending, or reducing borrowing. We organize the options into four goals: offset the new burdens that a carbon tax places on consumers, producers, communities, and
February 22, 2016Donald MarronAdele C. Morris
: Daily Deduction

Baselines, Bermuda, Breaks, and the Bag

There’s a baseline, and there’s precedent (or a lack thereof). Fivethirtyeight.com explains how hard it is to find consensus on exactly how much presidential candidates’ tax proposals would cost. “[T]he Tax Policy Center …probably the closest thing out there to a neutral observer… doesn’t produce
February 21, 2016Renu Zaretsky
Campaigns, Proposals, and Reforms: TaxVox

The GOP Proposed Tax Cuts Would be Unprecedented (updated)

Howard Gleckman pointed out that a common theme in the GOP primary tax proposals is that they are huge tax cuts. But how do they stand up to George W. Bush’s tax cuts, JFK’s oft-cited across-the-board cuts, or the tax bills that Ronald Reagan pushed through after his landslide 1980 victory? The
February 18, 2016Leonard E. Burman
: Daily Deduction

Time keeps ticking, reform keeps waiting.

How do the GOP presidential candidate tax plans stack up against one another? TPC tells the story in two charts. International tax reform takes the congressional stage next week. The Ways & Means Committee will hold a hearing on Wednesday , February 24, to explore the current global tax
February 18, 2016Renu Zaretsky
Campaigns, Proposals, and Reforms: TaxVox

How The GOP Candidate’s Tax Plans Stack Up Against One Another

How do the Republican presidential candidate tax plans stack up against one another? Who has the biggest tax cut? How do their plans affect people in different income groups? The Tax Policy Center has analyzed the plans of four candidates—Donald Trump, Ted Cruz , Marco Rubio , and Jeb Bush . At 30,
February 17, 2016Howard Gleckman
: Daily Deduction

“The future’s so bright, I gotta’ wear rose-colored shades.”

Sunny predictions? They’re not just for GOP tax plans anymore. Former chairs of the Council of Economic Advisers under Presidents Clinton and Obama are expressing concerns over Democratic presidential hopeful Bernie Sanders’ economic policies. Gerald Friedman, an economist at the University of
February 17, 2016Renu Zaretsky