Trade-offs of Expanding Individual Tax Credits While Repealing SALT Deduction June 24, 2021 Expanding the generosity of tax credits for lower-income individuals can help make the tax code more progressive, but it also reduces federal revenue. Pairing a credit expansion with a tax offset may sustain federal revenue but can also hamper economic growth.
Who Bears the Burden of Corporation Taxation? A Review of Recent Evidence June 10, 2021 The Biden administration has pledged to not raise taxes on anyone earning less than $400,000 a year. However, the administration’s corporate tax proposals would likely violate that pledge, given that corporations are comprised of people who also might earn less than $400,000.
Broad-Based Taxes on Consumption and User Fees Are Efficient Ways to Raise Federal Revenue for Infrastructure June 10, 2021 Rather than relying on damaging corporate tax hikes, policymakers should consider user fees and consumption taxes as options for financing new infrastructure to ensure that a compromise does not end up being a net negative for the U.S. economy.
A Closer Look at Eliminating the AMT June 8, 2021 In our new Options for Reforming America's Tax Code 2.0, there are several options that would simplify the tax code, including eliminating the alternative minimum tax (AMT). While this move would remove a source of complexity, policymakers should also consider reforming the deductions that created a justification for the AMT in the first place.
Closer Look at Option to Restructure EITC/CTC to Help Low-Income Households June 1, 2021 We take a closer look at the most extensive of these proposals: restructuring the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) based on the Family Security Act proposed by Sen. Mitt Romney (R-UT) in February.
Repealing Tariffs Would Be a Simple Option to Boost U.S. Economic Growth June 1, 2021 Of the many tax policies modeled in our new Options for Reforming America’s Tax Code 2.0, repealing the tariffs imposed under President Trump’s administration would be one of the simplest ways policymakers could boost economic growth.
Evaluating Options to Help Low-Income Households May 4, 2021 While strong economic growth—fueled by higher levels of investment, productivity, and jobs—will lift after-tax incomes over time, policies that provide relief by immediately boosting after-tax incomes of lower-income households are also available. As lawmakers consider such policies, they should keep in mind the trade-offs among them.
Reviewing Options to Raise Tax Revenue and the Trade-offs for Economic Growth and Progressivity May 3, 2021 There’s a useful contrast between two revenue options related to President Biden’s infrastructure push. The president's American Jobs Plan includes a proposal to raise the corporate tax rate to 28 percent. Meanwhile, historically, the gas tax is the main revenue source for transportation funding.
Providing Full Cost Recovery for Investment and Lowering Taxes on Firms Are Best Options for Boosting Growth April 27, 2021 As policymakers consider tax options to boost the U.S. economy’s long-run economic growth, they should consider reforms that would increase growth the most while minimizing forgone tax revenue.
Comparing the Trade-offs of Carbon Taxes and Corporate Income Taxes April 23, 2021 President Biden’s choice to fund new spending programs with increased corporate taxes comes with trade-offs for American output and incomes.
Raising the Corporate Rate to 28 Percent Reduces GDP by $720 Billion Over Ten Years April 21, 2021 The Options guide presents the economic effects we estimate would occur in the long term, or 20 to 30 years from now, but we can also use our model to show the cumulative effects of the policy change—providing more context, for instance, about how the effects of a higher corporate income tax rate compound over time, which we estimate would reduce GDP by a cumulative $720 billion over the next 10 years.
Trade-offs of Expanding Individual Tax Credits While Repealing SALT Deduction June 24, 2021 Expanding the generosity of tax credits for lower-income individuals can help make the tax code more progressive, but it also reduces federal revenue. Pairing a credit expansion with a tax offset may sustain federal revenue but can also hamper economic growth.
Broad-Based Taxes on Consumption and User Fees Are Efficient Ways to Raise Federal Revenue for Infrastructure June 10, 2021 Rather than relying on damaging corporate tax hikes, policymakers should consider user fees and consumption taxes as options for financing new infrastructure to ensure that a compromise does not end up being a net negative for the U.S. economy.
Repealing Tariffs Would Be a Simple Option to Boost U.S. Economic Growth June 1, 2021 Of the many tax policies modeled in our new Options for Reforming America’s Tax Code 2.0, repealing the tariffs imposed under President Trump’s administration would be one of the simplest ways policymakers could boost economic growth.
Evaluating Options to Help Low-Income Households May 4, 2021 While strong economic growth—fueled by higher levels of investment, productivity, and jobs—will lift after-tax incomes over time, policies that provide relief by immediately boosting after-tax incomes of lower-income households are also available. As lawmakers consider such policies, they should keep in mind the trade-offs among them.
Reviewing Options to Raise Tax Revenue and the Trade-offs for Economic Growth and Progressivity May 3, 2021 There’s a useful contrast between two revenue options related to President Biden’s infrastructure push. The president's American Jobs Plan includes a proposal to raise the corporate tax rate to 28 percent. Meanwhile, historically, the gas tax is the main revenue source for transportation funding.
Providing Full Cost Recovery for Investment and Lowering Taxes on Firms Are Best Options for Boosting Growth April 27, 2021 As policymakers consider tax options to boost the U.S. economy’s long-run economic growth, they should consider reforms that would increase growth the most while minimizing forgone tax revenue.
Comparing the Trade-offs of Carbon Taxes and Corporate Income Taxes April 23, 2021 President Biden’s choice to fund new spending programs with increased corporate taxes comes with trade-offs for American output and incomes.
Raising the Corporate Rate to 28 Percent Reduces GDP by $720 Billion Over Ten Years April 21, 2021 The Options guide presents the economic effects we estimate would occur in the long term, or 20 to 30 years from now, but we can also use our model to show the cumulative effects of the policy change—providing more context, for instance, about how the effects of a higher corporate income tax rate compound over time, which we estimate would reduce GDP by a cumulative $720 billion over the next 10 years.
Trade-offs of Expanding Individual Tax Credits While Repealing SALT Deduction June 24, 2021 Expanding the generosity of tax credits for lower-income individuals can help make the tax code more progressive, but it also reduces federal revenue. Pairing a credit expansion with a tax offset may sustain federal revenue but can also hamper economic growth.
Broad-Based Taxes on Consumption and User Fees Are Efficient Ways to Raise Federal Revenue for Infrastructure June 10, 2021 Rather than relying on damaging corporate tax hikes, policymakers should consider user fees and consumption taxes as options for financing new infrastructure to ensure that a compromise does not end up being a net negative for the U.S. economy.
Evaluating Options to Help Low-Income Households May 4, 2021 While strong economic growth—fueled by higher levels of investment, productivity, and jobs—will lift after-tax incomes over time, policies that provide relief by immediately boosting after-tax incomes of lower-income households are also available. As lawmakers consider such policies, they should keep in mind the trade-offs among them.
Reviewing Options to Raise Tax Revenue and the Trade-offs for Economic Growth and Progressivity May 3, 2021 There’s a useful contrast between two revenue options related to President Biden’s infrastructure push. The president's American Jobs Plan includes a proposal to raise the corporate tax rate to 28 percent. Meanwhile, historically, the gas tax is the main revenue source for transportation funding.
Comparing the Trade-offs of Carbon Taxes and Corporate Income Taxes April 23, 2021 President Biden’s choice to fund new spending programs with increased corporate taxes comes with trade-offs for American output and incomes.
Trade-offs of Expanding Individual Tax Credits While Repealing SALT Deduction June 24, 2021 Expanding the generosity of tax credits for lower-income individuals can help make the tax code more progressive, but it also reduces federal revenue. Pairing a credit expansion with a tax offset may sustain federal revenue but can also hamper economic growth.
Who Bears the Burden of Corporation Taxation? A Review of Recent Evidence June 10, 2021 The Biden administration has pledged to not raise taxes on anyone earning less than $400,000 a year. However, the administration’s corporate tax proposals would likely violate that pledge, given that corporations are comprised of people who also might earn less than $400,000.
A Closer Look at Eliminating the AMT June 8, 2021 In our new Options for Reforming America's Tax Code 2.0, there are several options that would simplify the tax code, including eliminating the alternative minimum tax (AMT). While this move would remove a source of complexity, policymakers should also consider reforming the deductions that created a justification for the AMT in the first place.
Closer Look at Option to Restructure EITC/CTC to Help Low-Income Households June 1, 2021 We take a closer look at the most extensive of these proposals: restructuring the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) based on the Family Security Act proposed by Sen. Mitt Romney (R-UT) in February.
Evaluating Options to Help Low-Income Households May 4, 2021 While strong economic growth—fueled by higher levels of investment, productivity, and jobs—will lift after-tax incomes over time, policies that provide relief by immediately boosting after-tax incomes of lower-income households are also available. As lawmakers consider such policies, they should keep in mind the trade-offs among them.
Reviewing Options to Raise Tax Revenue and the Trade-offs for Economic Growth and Progressivity May 3, 2021 There’s a useful contrast between two revenue options related to President Biden’s infrastructure push. The president's American Jobs Plan includes a proposal to raise the corporate tax rate to 28 percent. Meanwhile, historically, the gas tax is the main revenue source for transportation funding.
Comparing the Trade-offs of Carbon Taxes and Corporate Income Taxes April 23, 2021 President Biden’s choice to fund new spending programs with increased corporate taxes comes with trade-offs for American output and incomes.
