Archive for the ‘Bush tax cuts’ Category

Should We Delay the Tax Cut Debate Until Early 2013?

Over the past week or so, Bill Clinton, Larry Summers, and Glenn Hubbard have all made the same suggestion: Congress should extend all of the 2001/2003 tax cuts, due to expire at year’s end, into early next year. It seems like an awful idea. I suspect they have different motivations for this advice. Clinton, ever […]

The Better Base Case

The Congressional Budget Office’s latest update, released today, provides a snapshot of fiscal policy in the short run, the medium term, and the long run. CBO disclosed its short-term analysis in May: If automatic spending cuts and tax increases kick in as scheduled at the end of the year, the U.S. could be thrown back […]

How a Delay in the Debt Limit Will Change America’s Fiscal Politics

By now, you know the great taxmageddon story: At the end of the year, a lame duck Congress and a new or newly re-elected president will face the confluence of three extraordinary challenges—the 2001/2003/2010 tax cuts expire, the automatic spending cuts adopted in 2010 begin to bite, and the Treasury loses its ability to borrow […]

Buffett Rule Revenue

Critics of the Buffett Rule often argue that the idea is hardly worth the trouble since it would raise taxes on less than a tenth of one percent of Americans and generate less than $5 billion a year. With annual deficits projected at 100 times that amount over the next decade, the additional revenue is […]

Letting the Bush/Obama Tax Cuts Expire Would Raise Average Taxes by $3,000

It has sometimes been said, even by me, that the easiest way for Congress and the White House to fix the deficit is to do… nothing. Allow the 2001/2003/2010 tax cuts to expire as scheduled in eight months, let the automatic spending cuts enacted in 2011 kick in as planned and, voila, the short-term fiscal […]

Raising Revenue in a Progressive Manner Without Raising Tax Rates

Amidst the myriad proposals in President Obama’s budget are two “big ideas” that would raise revenue in a progressive manner without raising taxes. These important ideas should be emphasized in the discussion of tax and fiscal reform that the country should be having and will have to have sooner or later.  (The President also proposes […]

Romney’s Tax Plan Really Does Favor the Rich

Despite evidence to the contrary, there is a lingering view that Mitt Romney’s tax plan would primarily help middle-income households and not favor the rich. Yet TPC’s analysis of the plan clearly showed that high-income households would win big and others would do less well. Poor families would actually lose, relative to the taxes they’re […]

Congress Is Back, and So Are Its Battles Over Tax and Budget Policy

The least popular Congress in memory is back.  I, personally, am thrilled. After a year in which lawmakers did almost nothing besides (barely) keeping the government running, this session promises hardly more.  Tax policy will be at the center of much of the partisan squabbling, but it is hard to imagine Congress achieving more than a temporary […]

It’s Time Stop Squabbling about the Bush Tax Cuts

As long as politicians keep squabbling about what to do about the Bush era tax cuts, we are doomed. There will be no serious deficit reduction. There will be no tax reform. There will be nothing but the same old partisan arguments. Don’t believe me? Just listen to the chatter coming out of the failed deficit […]

The Deficit Super Committee: Still Not Serious

Is the Congress’ deficit super committee making progress? That depends on your definition of progress, I suppose.   The good news is that Republicans are increasingly uttering the “t” word, suggesting they might be willing to include some tax increases in a deficit reduction plan. The other good news is that Democrats reportedly are getting more […]