The new 2013 budget unveiled by President Obama on Monday again contains the Automatic IRA, which was developed by Brookings’ Retirement Security Project in conjunction with The Heritage Foundation. This year’s  version includes an important change that will also encourage more employers to offer a 401(k) account to their workers. However, important changes to the [...]

When it comes to taxes, President Obama has proposed what might best be called a conceptual budget—a powerful call for tax reform that is long on principles but, at least when it comes to individual levies, woefully short on specifics. This is understandable with what is effectively a reelection manifesto. In high campaign season, specifics [...]

In his State of the Union speech, President Obama’s called for a new law that would require high-income people to pay at least 30 percent of their income in taxes. In response, Senator Sheldon Whitehouse (D-RI) and Representative Tammy Baldwin (D-WI) have introduced the Paying a Fair Share Act of 2012, a proposal designed to [...]

For a while there, I thought President Obama was going to embrace tax reform in his State of the Union address.  Instead, following the lead of his predecessors, he offered a laundry list of new tax subsidies, bragged about some old ones, and said almost nothing about a top-to-bottom rewrite of the Tax Code. Here’s just [...]

As the economic coordinator of the Treasury study that led to Tax Reform Act of 1986, I’ve always found it fascinating to read and listen to stories about the law.   Many seek the linear trend from cause to effect to secondary cause to enactment, as if there was  some logical series of events that made [...]

I’m trying a new thing in the blog–imagining a debate between a smart conservative and liberal economist on a contentious tax policy issue. Here liberal economist Keynes and conservative economist Hayek debate the Buffett Rule–President Obama’s proposal that millionaires pay tax rates at least as high as middle-income people.  Let me know whether you think [...]

Senate Democratic Leader Harry Reid’s plan to fund a $445 billion stimulus, err, jobs bill with a 5.6 percent surtax on millionaires is not all bad. After all, Tax the Rich does make a nice campaign bumper-sticker. But it is mostly bad. Why? Here are five reasons. The idea, endorsed today by President Obama, would [...]

Conservatives like to say that President Obama has been responsible for massive tax increases.  It is wonderful rhetoric that plays to the big tax image Democrats have been saddled with for decades—sometimes with good reason. But for most households, this claim is the economic equivalent of the birther movement: It is as credible to call [...]

President Obama didn’t quite get around to saying so when he rolled out his latest deficit reduction plan on Monday, but his Buffett Rule—that no one making more than $1 million should pay a lower tax rate than those in the middle-class—is mostly about investment income. On average, high income people do pay significantly higher tax rates than [...]

On Monday, the Administration released its deficit reduction blueprint.   One part of the Administration’s proposal, which has received enormous attention, is that the Joint Select Committee on Deficit Reduction should observe the “Buffett Rule” if it attempts tax reform.  The furor over this proposal is surprising and the debate about it seems to have largely [...]