TaxVox: Federal Budget and Economy

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The voices of Tax Policy Center's researchers and staff

Federal Budget and Economy

The Stimulus and the Deficit

January 29, 2008 –
Not to spoil the stimulus party or anything, but the budget deficit this year could well approach $500 billion.
Federal Budget and Economy

States and Recession: What a Difference Six Months Makes

January 25, 2008 –
Six months ago, states were predicting balanced budgets and surpluses. Virtually all had surpluses at the end of fiscal year 2007 and more than half had ending balances equaling at least 10 percent of their general funds. Governors and legislatures were happily talking about property tax relief and expanding medical coverage to the uninsured.
Federal Budget and Economy

Deal or No Deal: Stimulus Moves Ahead

January 24, 2008 –
Well, it could have been worse. President Bush and House leaders say they have cut a deal on a $150 billion stimulus package—about $100 billion for families and individuals and about $50 billion for businesses. The centerpiece of the plan: a cash payment of at least $300 for most wage earners, along with an additional $300 per child.
Federal Budget and Economy

Stimulus: Who Should Get a Rebate?

January 22, 2008 –
With stock markets around the world sucking wind, and the Federal Reserve approving a stunning emergency interest rate cut of 75 basis points to try to forestall a Wall Street plunge, there no doubt that Washington policymakers will jump into the fray with a fiscal stimulus of their own.
Federal Budget and Economy

Stimulus: Treat the Disease, Not the Symptoms

January 18, 2008 –
When it comes to stimulus, President Bush and congressional Democrats may not quite be on the same page, but at least they are reading from the same book. I just wonder whether it is the right one.
Federal Budget and Economy

Can Fiscal Stimulus Arrive on Time?

January 15, 2008 –
Let's say President Bush and Congress agree that the U.S. needs a fiscal boost to jump-start the sluggish economy. Let's say they even reach a consensus on what to do (fantasy, perhaps, but bear with me). Could tax cuts and direct aid get to individuals, business, and states in time to forestall a recession?
Federal Budget and Economy

The Great Stimulus Debate: Round I

January 10, 2008 –
At the Brookings Institution this morning, a standing-room only crowd heard five economic heavyweights debate what may become the central domestic policy issue of 2008. Do we need fiscal stimulus to keep the nation out of recession, and, if we do, what should it look like?
Federal Budget and Economy

Economic Stimulus: In Play for '08

December 27, 2007 –
The leaders of both the House and Senate are exploring options for an economic stimulus plan they would unveil if the economy continues to weaken in 2008, TaxVox has learned. The talks, still in their early stages, could trigger a major election-year battle over fiscal policy. While neither party has settled on a plan, congressional Republicans are likely to propose new tax breaks as well an extension of the 2001 Bush tax cuts. Democrats are looking at a mix of tax cuts and other measures that they'd attach to targeted relief for those hardest hit by the mortgage mess.
Individual Taxes

TaxVox's First Annual Lump of Coal Awards

December 24, 2007 –
Congress and the President have finally left town. But they left quite a legacy. Here are our nominees for the five biggest fiscal losers of 2007. The AMT Patch: Sure, Congress finally agreed to keep 20 million middle-class families off the AMT for one more year. But it never paid for the $50 billion temporary fix and ignored proposals to permanently resolve the mess. Just wait until next year, when they do it all again.
Federal Budget and Economy

Terrorism Insurance: Another Subsidy That Will Not Die

December 20, 2007 –
In the aftermath of Sept. 11, 2001, Congress created a program in which taxpayers would backstop private insurance in the event of another major terror attack. The program, called the Terrorism Risk Insurance Act (TRIA), was supposed to be a temporary effort to both stabilize the insurance industry and prevent a broader economic meltdown after insurers stopped writing property and casualty coverage for many urban commercial developments.