Posts Tagged ‘JCT’

The Macro Effects of Camp’s Tax Reform

When House Ways & Means Chairman Dave Camp rolled out his tax reform last week, the Joint Committee on Taxation evaluated its macroeconomic impacts. Using two different models, the nonpartisan JCT found the plan would boost gross domestic product between 0.1 percent and 1.6 percent over the next ten years, which would increase federal revenue […]

Dave Camp’s pitch to overhaul U.S. taxes: An impossible dream?

Unlike many previous Republican proposals to cut taxes, the Michigan congressman specifies how government would pay for them. This is critical, but it’s not pretty. On Wednesday, U.S. Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, unveiled an ambitious plan to overhaul America’s complicated tax code. This is both a technical […]

Can Expiring Tax Provisions Save the Budget Talks?

There is lots of buzz around Washington about whether a laundry list of expiring tax provisions could be the key to a modest budget agreement. Sadly, it is hard to see how.   The theory goes like this: Democrats might agree to some cuts in programs such as Medicare if Republicans swallow some new revenues. […]

TPC Takes a New Look at Incomes

The Tax Policy Center has changed the way it calculates income. The new definition, which TPC calls “expanded cash income” or ECI, will raise measured income for most taxpayers. ECI includes sources of income TPC previously excluded such as employer contributions to retirement plans and health insurance, income earned by retirement accounts, and food stamp […]

Immigration, Dynamic Scoring, and CBO

Immigration policy poses an unusual challenge for the Congressional Budget Office and the Joint Committee on Taxation. If Congress allows more people into the United States, our population, labor force, and economy will all get bigger. But CBO and JCT usually hold employment, gross domestic product (GDP), and other macroeconomic variables constant when making their […]

How to Cut the Charitable Deduction Without Reducing Giving

If income tax deductions are capped or limited—an idea that often comes up in the debate over both the fiscal cliff and long-run tax reform—the biggest losers could well be charities. At a time when the government role in providing a safety net may shrink, many of these groups may become increasingly important.  Yet deduction […]

Too Many Cooks on Tax Policy?

I’m preparing a presentation on our tax system for a group of visiting foreign tax officials and they wanted to know how responsibilities are divided within the federal government.  Seems like a fair question. In other countries, the process is often quite streamlined:  a Ministry of Finance, which makes the political decisions, a Treasury Department, […]