Prospects for Federal Tax Policy After the 2020 Election November 10, 2020 A Biden administration may have to work with a Republican Senate majority (pending the Georgia runoff election results) to navigate various tax policy issues in the coming year, including another round of pandemic-related economic relief and upcoming scheduled tax increases built into current law.
Biden’s Call for More Tax Credits Further Complicates the Tax Code November 3, 2020 Over the course of the 2020 presidential election campaign, Democratic nominee Joe Biden has proposed new tax credits for health insurance, child care, elderly care, and homeownership, in addition to expansions of the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC).
Joe Biden’s 67 Percent Tax on Wealth October 28, 2020 Biden may have rejected a Bernie Sanders-style wealth tax, but the Democratic nominee is proposing other ways of taxing wealth without explicitly labeling his policies a wealth tax—by as much as 67 percent.
Biden-Harris Proposals Can Raise Taxes on the Middle Class October 21, 2020 If we look at both the legal incidence of the Biden-Harris policy proposals and their economic incidence, we find both direct and indirect tax increases on many taxpayers who earn less than $400,000.
Top Rates in Each State Under Joe Biden’s Tax Plan October 20, 2020 Democratic presidential nominee Joe Biden’s tax plan would yield combined top marginal state and local rates in excess of 60 percent in three states: California, Hawaii, and New Jersey (also New York City).
How Would Biden’s Tax Plan Change the Competitiveness of the U.S. Tax Code? October 19, 2020 While the Biden campaign is certainly focused on increasing taxes on U.S. businesses and high-income earners, it is important that policymakers also understand what that reversal might do to U.S. competitiveness, and the competitive global environment in which U.S. companies and U.S. workers operate.
How Should Wealth and Work Be Treated in the Tax Code? September 21, 2020 Taxing capital income and labor income similarly is a difficult goal to achieve and comes with real trade-offs that policymakers have to consider when proposing tax changes. There are opportunities to reduce avoidance incentives in the tax code by ensuring that effective tax rates between business forms and sources of financing are as neutral as they can be, in addition to shoring up rules related to self-employment taxes. Biden’s tax plan, however, would go the other direction by increasing the bias in favor of debt-financing and non-corporate investment.
Biden’s Plan to Address Offshoring Comes with Contradictions September 9, 2020 If the goal of the Biden campaign is to bring new investment and jobs to the U.S., it is doubtful that these new tax rules will contribute to that goal.
Placing Joe Biden’s Tax Increases in Historical Context October 22, 2020 If we consider Biden’s tax plan over the entire budget window (2021 to 2030) as a percentage of GDP—1.30 percent—it would rank as the 6th largest tax increase since the 1940s and and one of the largest tax increases not associated with wartime funding.
Biden’s Proposal Would Shift the Distribution of Retirement Tax Benefits August 26, 2020 One of Biden’s tax proposals that has gotten little attention is a change that would shift the benefits of tax deferral in traditional retirement accounts toward lower- and middle-income earners. The plan would reduce the tax benefit for those earning above $80,250 but under $400,000, violating Biden’s tax pledge to not raise taxes on earners below the $400,000 threshold.
President Trump Outlines Second Term Tax Ideas August 25, 2020 Broad themes of the president’s agenda include providing tax relief to individuals and tax credits to businesses that engage in desired activities, while the status of expiring TCJA provisions and tariffs seems uncertain.
Reviewing Joe Biden’s Tax Vision August 20, 2020 Biden’s tax vision is twofold: higher taxes on high-income earners and businesses paired with more generous provisions for specific activities and households.
Where Does Kamala Harris Stand on Tax Policy? August 12, 2020 What tax policy ideas did Harris propose along the campaign trail, and how do they differ from Biden’s plan?
Not All Taxes Are Created Equal July 27, 2020 There are better and worse ways to raise a dollar of revenue. That’s because no two taxes impact the economy the same.
Taxes: The Price We Pay for Government July 27, 2020 The U.S. is one of the most “business dependent” tax systems in the industrialized world. U.S. businesses pay about 29 percent of all taxes collected in the country and remit another 64 percent—adding up to 93 percent of all taxes collected in America.
10 Common Tax Myths, Debunked July 15, 2020 Discover why tax refunds shouldn’t be celebrated, why you should pay your income tax bill, and why certain deductions are wrongly labeled “loopholes,” among other useful facts.
Common Tax Questions, Answered July 15, 2020 Learn everything from the basics of who pays taxes and the difference between credits and deductions, to how taxes impact the economy and what constitutes sound tax policy.
Biden’s Plan to Boost Research and Development Should Include Cancellation of Upcoming R&D Amortization July 13, 2020 As concern over American competitiveness and onshoring of innovative activity increases, presidential candidates and policymakers should keep in mind the tax increases scheduled to take effect in the coming years, including the amortization of R&D and phaseout of the broader expensing provisions.
Details and Analysis of President-elect Joe Biden’s Tax Plan October 22, 2020 What are the details of Joe Biden's tax plan? How would it affect the economy, revenue, and taxpayers?
Analysis of Capital Gains Tax Proposals Among Democratic Presidential Candidates March 18, 2020 Joe Biden and Bernie Sanders have both released proposals to tax capital gains at ordinary income rates for the wealthiest Americans. As part of a broader platform to address income inequality, Biden and Sanders suggest increasing current capital gains rates on taxpayers with income over $1 million and $250,000, respectively.
A History and Analysis of Payroll Tax Holidays March 31, 2020 As Congress and the White House consider ways to shore up the economy in the face of a public health crisis, President Trump has suggested suspending the entire payroll tax for the duration of the year. That would cost about $950 billion, according to our analysis.
Analysis of Democratic Presidential Candidate Individual Income Tax Proposals March 11, 2020 Joe Biden and Bernie Sanders have each proposed changes to the individual income tax, one of the largest sources of federal revenue. Our new analysis compares the economic, revenue, and distributional effects of the various proposals.
Summary of the Latest Federal Income Tax Data, 2020 Update February 25, 2020 The latest IRS data shows that the U.S. individual income tax continues to be very progressive, borne primarily by the highest income earners. The top 1 percent of taxpayers pay a 26.8 percent average individual income tax rate, which is more than six times higher than taxpayers in the bottom 50 percent (4.0 percent).
Insights into the Tax Systems of Scandinavian Countries February 24, 2020 Sen. Bernie Sanders often refers to tax systems in Scandinavian countries like Denmark and Sweden. But how do Scandinavian countries really pay for their government spending?
Analysis of Democratic Presidential Candidates Corporate Income Tax Proposals February 19, 2020 2020 Democratic presidential candidates have proposed various changes to the corporate income tax, which includes increasing the rate, ranging from 25 percent to 35 percent, imposing a corporate surtax or a minimum tax, and lengthening depreciation schedules.
Analysis of Democratic Presidential Candidate Payroll Tax Proposals February 11, 2020 Several 2020 Democratic presidential candidates have proposed changes to federal payroll tax rates and the Social Security payroll tax wage base to raise revenue and maintain solvency for major federal entitlement programs.
Analysis of Sen. Warren and Sen. Sanders’ Wealth Tax Plans January 27, 2020 New modeling finds that the wealth taxes proposed by Sen. Warren and Sen. Sanders would raise significantly less revenue than promised, face serious administrative and compliance challenges, and would increase foreign ownership of U.S. capital.
Proposed Corporate Rate Hike Would Damage Economic Output August 23, 2018 Raising the corporate tax rate would reduce economic growth and lead to a smaller capital stock, lower wage growth, and reduced employment.
Tracking the Economic Impact of U.S. Tariffs and Retaliatory Actions May 31, 2019 The Trump administration has so far imposed $80 billion worth of new taxes on Americans by levying tariffs on thousands of products, which is equivalent to one of the largest tax increases in decades.
Prospects for Federal Tax Policy After the 2020 Election November 10, 2020 A Biden administration may have to work with a Republican Senate majority (pending the Georgia runoff election results) to navigate various tax policy issues in the coming year, including another round of pandemic-related economic relief and upcoming scheduled tax increases built into current law.
Biden’s Call for More Tax Credits Further Complicates the Tax Code November 3, 2020 Over the course of the 2020 presidential election campaign, Democratic nominee Joe Biden has proposed new tax credits for health insurance, child care, elderly care, and homeownership, in addition to expansions of the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC).
Joe Biden’s 67 Percent Tax on Wealth October 28, 2020 Biden may have rejected a Bernie Sanders-style wealth tax, but the Democratic nominee is proposing other ways of taxing wealth without explicitly labeling his policies a wealth tax—by as much as 67 percent.
Biden-Harris Proposals Can Raise Taxes on the Middle Class October 21, 2020 If we look at both the legal incidence of the Biden-Harris policy proposals and their economic incidence, we find both direct and indirect tax increases on many taxpayers who earn less than $400,000.
Top Rates in Each State Under Joe Biden’s Tax Plan October 20, 2020 Democratic presidential nominee Joe Biden’s tax plan would yield combined top marginal state and local rates in excess of 60 percent in three states: California, Hawaii, and New Jersey (also New York City).
How Would Biden’s Tax Plan Change the Competitiveness of the U.S. Tax Code? October 19, 2020 While the Biden campaign is certainly focused on increasing taxes on U.S. businesses and high-income earners, it is important that policymakers also understand what that reversal might do to U.S. competitiveness, and the competitive global environment in which U.S. companies and U.S. workers operate.
How Should Wealth and Work Be Treated in the Tax Code? September 21, 2020 Taxing capital income and labor income similarly is a difficult goal to achieve and comes with real trade-offs that policymakers have to consider when proposing tax changes. There are opportunities to reduce avoidance incentives in the tax code by ensuring that effective tax rates between business forms and sources of financing are as neutral as they can be, in addition to shoring up rules related to self-employment taxes. Biden’s tax plan, however, would go the other direction by increasing the bias in favor of debt-financing and non-corporate investment.
Biden’s Plan to Address Offshoring Comes with Contradictions September 9, 2020 If the goal of the Biden campaign is to bring new investment and jobs to the U.S., it is doubtful that these new tax rules will contribute to that goal.
Placing Joe Biden’s Tax Increases in Historical Context October 22, 2020 If we consider Biden’s tax plan over the entire budget window (2021 to 2030) as a percentage of GDP—1.30 percent—it would rank as the 6th largest tax increase since the 1940s and and one of the largest tax increases not associated with wartime funding.
Biden’s Proposal Would Shift the Distribution of Retirement Tax Benefits August 26, 2020 One of Biden’s tax proposals that has gotten little attention is a change that would shift the benefits of tax deferral in traditional retirement accounts toward lower- and middle-income earners. The plan would reduce the tax benefit for those earning above $80,250 but under $400,000, violating Biden’s tax pledge to not raise taxes on earners below the $400,000 threshold.
Reviewing Joe Biden’s Tax Vision August 20, 2020 Biden’s tax vision is twofold: higher taxes on high-income earners and businesses paired with more generous provisions for specific activities and households.
Where Does Kamala Harris Stand on Tax Policy? August 12, 2020 What tax policy ideas did Harris propose along the campaign trail, and how do they differ from Biden’s plan?
Biden’s Plan to Boost Research and Development Should Include Cancellation of Upcoming R&D Amortization July 13, 2020 As concern over American competitiveness and onshoring of innovative activity increases, presidential candidates and policymakers should keep in mind the tax increases scheduled to take effect in the coming years, including the amortization of R&D and phaseout of the broader expensing provisions.
Details and Analysis of President-elect Joe Biden’s Tax Plan October 22, 2020 What are the details of Joe Biden's tax plan? How would it affect the economy, revenue, and taxpayers?
Analysis of Capital Gains Tax Proposals Among Democratic Presidential Candidates March 18, 2020 Joe Biden and Bernie Sanders have both released proposals to tax capital gains at ordinary income rates for the wealthiest Americans. As part of a broader platform to address income inequality, Biden and Sanders suggest increasing current capital gains rates on taxpayers with income over $1 million and $250,000, respectively.
Analysis of Democratic Presidential Candidate Individual Income Tax Proposals March 11, 2020 Joe Biden and Bernie Sanders have each proposed changes to the individual income tax, one of the largest sources of federal revenue. Our new analysis compares the economic, revenue, and distributional effects of the various proposals.
Analysis of Democratic Presidential Candidates Corporate Income Tax Proposals February 19, 2020 2020 Democratic presidential candidates have proposed various changes to the corporate income tax, which includes increasing the rate, ranging from 25 percent to 35 percent, imposing a corporate surtax or a minimum tax, and lengthening depreciation schedules.
Analysis of Democratic Presidential Candidate Payroll Tax Proposals February 11, 2020 Several 2020 Democratic presidential candidates have proposed changes to federal payroll tax rates and the Social Security payroll tax wage base to raise revenue and maintain solvency for major federal entitlement programs.
Proposed Corporate Rate Hike Would Damage Economic Output August 23, 2018 Raising the corporate tax rate would reduce economic growth and lead to a smaller capital stock, lower wage growth, and reduced employment.
President Trump Outlines Second Term Tax Ideas August 25, 2020 Broad themes of the president’s agenda include providing tax relief to individuals and tax credits to businesses that engage in desired activities, while the status of expiring TCJA provisions and tariffs seems uncertain.
A History and Analysis of Payroll Tax Holidays March 31, 2020 As Congress and the White House consider ways to shore up the economy in the face of a public health crisis, President Trump has suggested suspending the entire payroll tax for the duration of the year. That would cost about $950 billion, according to our analysis.
Tracking the Economic Impact of U.S. Tariffs and Retaliatory Actions May 31, 2019 The Trump administration has so far imposed $80 billion worth of new taxes on Americans by levying tariffs on thousands of products, which is equivalent to one of the largest tax increases in decades.
Not All Taxes Are Created Equal July 27, 2020 There are better and worse ways to raise a dollar of revenue. That’s because no two taxes impact the economy the same.
Taxes: The Price We Pay for Government July 27, 2020 The U.S. is one of the most “business dependent” tax systems in the industrialized world. U.S. businesses pay about 29 percent of all taxes collected in the country and remit another 64 percent—adding up to 93 percent of all taxes collected in America.
10 Common Tax Myths, Debunked July 15, 2020 Discover why tax refunds shouldn’t be celebrated, why you should pay your income tax bill, and why certain deductions are wrongly labeled “loopholes,” among other useful facts.
Common Tax Questions, Answered July 15, 2020 Learn everything from the basics of who pays taxes and the difference between credits and deductions, to how taxes impact the economy and what constitutes sound tax policy.
Summary of the Latest Federal Income Tax Data, 2020 Update February 25, 2020 The latest IRS data shows that the U.S. individual income tax continues to be very progressive, borne primarily by the highest income earners. The top 1 percent of taxpayers pay a 26.8 percent average individual income tax rate, which is more than six times higher than taxpayers in the bottom 50 percent (4.0 percent).
Insights into the Tax Systems of Scandinavian Countries February 24, 2020 Sen. Bernie Sanders often refers to tax systems in Scandinavian countries like Denmark and Sweden. But how do Scandinavian countries really pay for their government spending?
Analysis of Sen. Warren and Sen. Sanders’ Wealth Tax Plans January 27, 2020 New modeling finds that the wealth taxes proposed by Sen. Warren and Sen. Sanders would raise significantly less revenue than promised, face serious administrative and compliance challenges, and would increase foreign ownership of U.S. capital.
Proposed Corporate Rate Hike Would Damage Economic Output August 23, 2018 Raising the corporate tax rate would reduce economic growth and lead to a smaller capital stock, lower wage growth, and reduced employment.
