Alex Muresianu

Fixing Tax Treatment of Capital Investments Could Improve Supply Chain Resiliency

While taxes are not at the root of supply chain disruptions, improvements to the tax code could make supply chains more resilient in the future.

Proposal for Reporting Requirements for Financial Institutions Misses the Mark

Reducing the tax gap is a good idea, but the reporting requirements for financial institutions could be better-targeted at the problem at hand.

Carbon Tax: Weighing the Options for Financing Reconciliation

A carbon tax would be a less economically harmful pay-for than either personal or corporate income tax hikes and a more efficient way to reduce carbon emissions than green energy tax credits, but would come with other trade-offs.

The Good, the Bad, and the Ugly of the Ways and Means Plan

The latest version of the Biden Build Back Better agenda, released last week by the House Ways and Means committee, is dense, with too many provisions to flesh out completely. Here’s a rundown of the good, the bad, and the ugly of it.

Yes, the US Tax Code Is Progressive

As Congress considers several tax proposals designed to raise taxes on high-income earners, it’s worth considering the distribution of the existing tax code.

U.S. Would Have Third-Highest Corporate Tax Rate in OECD Under Ways and Means Plan

Under the Ways and Means text, the U.S. would have an average corporate tax rate of 30.9 percent, which would be the third-highest corporate tax rate in the OECD, behind only Colombia and Portugal.

Corporations in Most States Would Face Income Tax Rate Exceeding 30 Percent Under Ways and Means Proposal

Under the House Democrats’ tax plan, companies in 21 states and D.C. would face a higher corporate tax rate than in any country in the OECD.

Tax Reform and Infrastructure Investment: The Two Theories

The Biden administration does have a point about how some components of the infrastructure bill could put downward pressure on inflation in the long term. However, the taxes chosen to pay for those investments would counteract those effects, by reducing investment and productivity growth.

Reviewing Wyden’s Reconciliation Tax Policy Proposals

Congressional lawmakers are putting together a reconciliation bill to enact much of President Biden’s Build Back Better agenda. Many lawmakers including Senate Finance Committee Chair Ron Wyden (D-OR), however, want to make their own mark on the legislation.

Wyden’s Financial Services Tax Proposals Would Put “Mark-to-Market” to the Test

Mark-to-market is not simple to implement, as it involves new administrative and compliance challenges for taxpayers. Mark-to-market levies tax on phantom income, requiring some taxpayers to engage in some degree of liquidation, ultimately suppressing incentives to save and invest. The limited tax revenues that could result from these proposals are not worth the risk.

A Guide to the Fossil Fuel Provisions of the Biden Budget

The DASH Act Isn’t the Best Way to Solve the Housing Crisis

To tackle problems of homelessness and housing costs, Senator Ron Wyden (D-OR) has released a major tax proposal, the Decent Affordable Safe Housing (DASH) For All Act. Several of Wyden’s proposals are also components of the Biden administration’s infrastructure agenda, with a large focus on tax credits designed to either incentivize new housing or directly reduce rent burdens.

5 Things to Consider in the Tax Gap Discussion

Increasing tax compliance is a major part of the Biden administration proposal to raise revenue for physical and social infrastructure. Reducing the tax gap—the difference between taxes owed and taxes paid—is a good way to raise revenue, but it doesn’t come without trade-offs, and it’s important to go about it in the right way.

Considering Trade-offs to Improving Tax Collections

Recent Biden administration proposals rely heavily on revenue from better IRS tax collections to fund spending initiatives. The American Families Plan uses several avenues to reduce the tax gap (or the difference between taxes paid and taxes owed), from increasing the IRS’s tax enforcement budget to improving information technology and expanding reporting requirements.

Tax Treatment of Nuclear Energy Should Be Simplified, Neutral, with Renewable Energy Sources

Tackling climate change and shifting the economy towards renewable energy has been a key part of the Biden administration’s agenda. However, this effort must first confront an overly complicated and non-neutral tax code, particularly in how it treats nuclear energy, for the White House to reach its ambitious goals.

Senator Warren’s Corporate Book Tax Is Wrong Way to Fund New Spending

The arguments for a new surtax on corporate book income misconstrues why there are differences between a corporation’s taxable income and book income.

Striking Right Balance for Cryptocurrency Reporting Requirements in Bipartisan Infrastructure Package

While it makes sense to ensure cryptocurrency transactions are treated similarly to other financial assets, the nature of these requirements as written are potentially unworkable.

Return-Free Filing: A Better Fit for a Better Tax Code

Return-free filing could reduce compliance costs for many taxpayers, but would only be as good as the system it is administrating.

Simplifying the Tax Code and Reducing the Tax Gap: What Can Be Achieved?

Reducing the tax gap is, on the margin, a good way to raise revenue, but is not without costs. Policymakers should consider compliance costs for law-abiding taxpayers as well as administrative costs for the IRS when evaluating measures to reduce the tax gap.

How the Tax Code Handles Inflation (and How It Doesn’t)

While parts of the U.S. tax code can handle inflation, full expensing of capital investment would be a major improvement along these lines.