TaxVox

The voices of Tax Policy Center's researchers and staff

Campaigns, Proposals, and Reforms

TPC Looks at the Obama and McCain Tax Plans

June 11, 2008 –
In the first detailed analysis of the Barack Obama and John McCain tax plans, the Tax Policy Center has run their proposals through the Big Computer and discovered that their schemes are, well, painfully predictable. Each would raise the national debt by trillions of dollars. Obama would use the money to provide modest tax cuts to low- and moderate-income people while imposing stiff tax hikes on the very wealthy. McCain would cut taxes a bit for the working-class and a lot for the rich.
Federal Budget and Economy

High Wire and Hospital: Two Books You Should Read

June 10, 2008 –
I've just finished two terrific new books: High Wire: The Precarious Financial Lives of American Families by long-time LA Times reporter Peter Gosselin, and Hospital by Julie Salamon. In quite different ways, each illuminates some of the critical social policy issues of our time.
Individual Taxes

A New Annuity for 401(k)s

June 5, 2008 –
As 401(k) plans and other defined contribution savings vehicles have become more popular in recent years, retirement experts have become increasingly worried about how workers can make these funds literally last a lifetime. Too often, retirees withdraw the money too quickly and end up outliving their savings or, worse, take the whole pot of cash and go off to buy that bass boat they’ve always wanted.
Campaigns, Proposals, and Reforms

What Will Obama Do with a Cap and Trade Windfall?

June 3, 2008 –
Interesting confluence of events: Barack Obama is about to wrap up the Democratic Presidential nomination and the Senate has begun debating a major plan to cap carbon emissions—an idea Obama strongly supports.
Individual Taxes

How The Rich Avoid Paying Taxes

May 29, 2008 –
It is a nice object lesson in how a couple of obscure changes in the tax law can save a few people a lot of money. The IRS has reported that the number of those earning $200,000 or more who paid no taxes rose sharply in 2005. More than 7,300 of these worthies avoided U.S. income tax entirely, two-and-a-half times the year before. About 85,000 paid worldwide taxes of less than 10% of their income.
Federal Budget and Economy

Tax Extenders and Fiscal Responsibility

May 29, 2008 –
For another take on my debate with George Yin on whether temporary tax breaks are a good idea George) or not (me), take a look...
Federal Budget and Economy

Paul Ryan’s Fiscal Roadmap

May 27, 2008 –
Kudos to Rep. Paul Ryan (R-WI), the senior Republican on the House Budget Committee, for proposing an ambitious plan aimed at bringing government spending under control over the next 75 years. Actually, Ryan would do even more than that. He’d also restructure the tax code, Social Security, Medicare, and Medicaid.
Individual Taxes

Temporary Laws and Fiscal Restraint

May 27, 2008 –
Howard Gleckman continues to think that temporary tax cuts are no better than permanent ones from the standpoint of enhancing political accountability and fiscal restraint (“Tax Extenders and Fiscal Restraint,” May 22, 2008). So here’s some data.
Individual Taxes

The Supreme Court and Muni Bonds

May 23, 2008 –
On Monday, the Supreme Court ruled that states may offer special tax breaks to residents for investing in municipal bonds issued by them and local governments within the state. The 7-2 decision, in Kentucky Department of Revenue v. Davis was widely expected. But even if the Court wanted to bar states from preferring their own bonds over those from other jurisdictions, the current troubles of the $2.6 trillion municipal bond market probably made that impossible.
Individual Taxes

Tax Extenders and Fiscal Restraint

May 22, 2008 –
It was good to hear from University of Virginia tax professor and former Joint Tax Committee boss George Yin. George argues that temporary tax cuts are a good idea because they force Congress to consider the costs and benefits of these measures before renewing them. This reckoning, he says, imposes more political accountability on the system, not less.