TaxVox: Federal Budget and Economy

RSS

The voices of Tax Policy Center's researchers and staff

Campaigns, Proposals, and Reforms

McCain and Obama Stimulus Plans: The Good, Bad, and Ugly

October 14, 2008 –
Both Barack Obama and John McCain have rolled out new economic stimulus plans. Each is a hodgepodge of some good ideas, some not-so-good, and some potentially awful. Obama says his new ideas would cost $60 billion. McCain says his would cost about $52 billion. Here is a quick look at what they have in mind: The centerpiece of Obama’s proposal is a new refundable tax credit for companies that add domestic jobs. Businesses would get $3000 for every net new full-time worker they hire. Any business would be eligible, even those that pay no taxes.
Individual Taxes

McCain’s Mortgage Refi Plan: Half a Good Idea

October 8, 2008 –
The most interesting thing I heard in last night's debate between John McCain and Barack Obama (in fact, the only interesting thing I heard) was McCain's call for a new federal effort to directly refinance residential mortgages into new low-interest loans. The plan got me thinking about a provocative way to pay for it—eliminate the mortgage interest deduction for these new loans.
Individual Taxes

The Next Financial Bailout

October 6, 2008 –
My sources at the Federal Reserve and in the financial markets increasingly expect that Washington is going to have to put up hundreds of billions of dollars more to directly recapitalize troubled banks. Such a step would be in addition to the $700 billion authorized by Congress last week and could require new congressional appropriations. It would put even greater pressure on the short-term budget deficit and add to uncertainty over the total cost of cleaning up the financial system mess. It could also require new federal legislation, setting up yet another bruising battle on Capitol Hill.
Federal Budget and Economy

Brother, Can You Spare a Tax Credit?

October 2, 2008 –
Let it be written: If the Senate-passed financial services bailout bill turns out to save us from the next Great Depression, we will owe a deep debt of gratitude to… chicken poop. If not, we can simply say the entire proposition turned out to be little more than, well, you know.
Individual Taxes

The Bailout and Capital Gains Taxes

September 29, 2008 –
Whatever its ultimate fate, the $700 billion financial market bailout has me thinking about how events of the past few months have fundamentally changed the nature of economic risk in the U.S. And, that, in turn, raises some interesting questions about capital gains taxes.
Federal Budget and Economy

Do the Candidates’ Spending Plans Add Up?

September 29, 2008 –
On Friday morning, I am going to moderate what promises to be an enlightening discussion of the spending plans of the major Presidential candidates. Panelists will be Rudy Penner of The Urban Institute, Jim Horney of the Center on Budget and Policy Priorities, Maya MacGuineas of the Committee for a Responsible Federal Budget, and Bill Hoagland of CIGNA (and formerly the top budget guru for ex-Senate Republican Leader Bill Frist).
Individual Taxes

The Worst Tax Holiday Idea Ever

September 26, 2008 –
We had fun ridiculing the idea of suspending the gasoline tax for the summer, but the gas tax holiday was minor mischief compared with the newest idea for dealing with the financial market meltdown: a two year holiday on capital gains taxes.
Federal Budget and Economy

The Bailout and the Next President: Getting Real

September 23, 2008 –
Barack Obama and John McCain are slowly beginning to get it: For the next President, this week’s financial market meltdown has changed everything. Suddenly, their grandiose promises of new tax cuts and ambitious spending are sounding more hollow than ever. An $11.3 trillion national debt will do that to you every time.
Federal Budget and Economy

The Blank Check Bailout

September 22, 2008 –
The Bush Administration has asked Congress to write the biggest blank check in the history of the planet. And Congress may very well do it. The Administration’s proposal requires only semi-annual reports to congressional committees and explicitly exempts any bailout-related actions from judicial review. This has a whiff of the war on terror about it. “We are in a crisis,” the Administration cries, “and you must act now. Do not stop and think. Do not amend. Just approve what we say or we will blame you for what happens next.”
Federal Budget and Economy

Bad Markets and Deficits

September 18, 2008 –
Crumbling financial markets mean more awful news for governments already reeling from an economic slowdown and mortgage foreclosures. The only glimmer of optimism is that the sluggish revenues and rising spending that are around the corner should only be transitory. Assuming the markets and the economy rebound, these fiscal shocks will be a fading memory after a few years.