TaxVox

The voices of Tax Policy Center's researchers and staff

Individual Taxes

Temporary Laws, Political Accountability, and Fiscal Restraint

May 20, 2008 –
Howard Gleckman’s criticism of temporary legislation (“The Tax Extenders Ride Again,” May 20, 2008) overlooks the impact of Congressional budget rules. When such rules are considered, a change in law on a temporary (rather than permanent) basis increases political accountability and arguably enhances fiscal restraint.
Individual Taxes

The Tax Extenders Ride Again

May 20, 2008 –
The other day, the House Ways & Means Committee routinely approved dozens and dozens of tax breaks. Hardly anyone even noticed.
Individual Taxes

Forget Death and Taxes, How About Health and Taxes?

May 15, 2008 –
Like it or not, health care and taxes are inextricably linked in the U.S. The employer-sponsored health system that covers most of the non-elderly is largely built on nearly $200 billion in income tax breaks. The biggest: employer-sponsored insurance which is tax-free to workers. Perversely, this structure provides the biggest tax breaks to the highest income workers who get the most expensive plans.
Campaigns, Proposals, and Reforms

Cap’n Trade: McCain Weighs In

May 13, 2008 –
Yesterday, John McCain disclosed details of his plan to cut the use of fossil fuels—and thus greenhouse gases--through a cap and trade system of mandatory emissions reductions. As we have written, cap’n trade is not the name of a cheesy seafood restaurant. It is Washington-speak for a huge new tax on oil, gas, and coal. This is a good thing, but we ought to talk about it honestly.
Individual Taxes

The Farm Bill: Back to the Trough

May 8, 2008 –
$451 million in tax breaks for timber companies. Ka-ching. $500 million for biodiesel. Ka-ching. $126 million for racehorse breeders. Ka-ching. $20 million for Aggie bonds. Ka-ching.
Campaigns, Proposals, and Reforms

Cap’n Trade: Don’t Cut the Gas Tax, Raise It—A Lot

May 6, 2008 –
Before you get the idea that a big increase in energy taxes is just the latest raving of an elitist, inside-the-Beltway policy wonk, you might want to know that I’m not the only one who likes this idea. So do John McCain, Hillary Clinton, and Barack Obama.
Campaigns, Proposals, and Reforms

Clintonomics on the Gas Tax Holiday

May 5, 2008 –
Senator Clinton has taken economists to task for our universal opposition to a gas tax holiday. Both theory and evidence tell us that suspending the tax temporarily would provide little relief to consumers while further enriching big oil.
Individual Taxes

We’re in the Money but What Will We Do with It?

May 5, 2008 –
With unusual speed, the IRS sent out the first tranche of $100 billion in recovery rebates last Monday. It took Congress and the President less than a month to enact the Economic Stimulus Act of 2008 and then just 62 days for the IRS to begin getting the money into people's hands. The question now is what will they do with the windfall, which for couples will be as much as $1,200 plus $300 per child. The answer may disappoint those who are hoping a new burst of consumer spending will give the lagging economy a needed boost.
Individual Taxes

The Gas Tax Holiday: Can the States Do Any Better?

May 2, 2008 –
While TaxVox and others have disclosed the folly of a federal tax holiday, some have suggested that temporary state gas tax relief might work better. Some New York State legislators are already pushing for such a plan. But before cash-strapped states jump on the bandwagon, they might consider how a previous experiment in Illinois and Indiana worked out. In 2000, Indiana announced that it would be suspending its 5 percent gasoline sales tax for 120 days beginning July 1. In response, Illinois also suspended its levy for six months that July.. Quaint as it seems today, the changes were spurred by a spring spike in Midwest gas prices to (gasp) $2.00 – a level drivers would now gladly embrace.
Individual Taxes

A Primer on the Gas Tax Holiday

May 2, 2008 –
If a gas tax holiday drives the price down by the full amount of the tax (18.4 cents), the average driver would save about $28 ($27.67) between June 1 and September 1. But we think the price would fall by only a small fraction of the 18.4 cents tax – so instead of $28, the average driver might save $5 to $10.