Tag: ‘Tax Policy Center’

Rubio Tries to Triangulate Tax Policy

By :: April 16th, 2015

Newly declared GOP presidential hopeful Senator Marco Rubio is trying something truly (Bill) Clintonesque—navigating between the demands of his party’s base and a more centrist, forward-looking political agenda. Nowhere is it more obvious than in tax policy. And nowhere is the road ahead more risky for his presidential ambitions. In March, Rubio and fellow senator […]

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What Will Happen To Voluntary Tax Compliance If a Budget-constrained IRS Is Not Fixed?

By :: April 9th, 2015

Is the IRS such a mess that the nation’s system of voluntary tax compliance is at risk? Will frustrated taxpayers rebel because they can’t get help with a revenue code they can’t understand? Will aggressive taxpayers who recognize that audit rates have plummeted to the lowest levels in years further push the tax-avoidance envelope?  And […]

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For Most Households, It’s About the Payroll Tax, Not the Income Tax

By :: April 2nd, 2015

While policymakers obsess about the income tax, they often lose sight of an important detail: For two-thirds of households, the levy that matters most is the payroll tax. According to a new report by the Joint Committee on Taxation, the 80 million tax filers making $40,000 or less will collectively pay no federal income tax and many […]

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Is a Consumption Tax Talk Making a Comeback?

By :: March 31st, 2015

Maybe it’s just because Congress is on spring break and tax wonks don’t have much to talk about, but suddenly the idea of a consumption tax is getting a new look. The tax plan proposed earlier this month by senators Mike Lee (R-UT) and Marco Rubio (R-FL) is one form of the levy. And tax […]

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So Far, Affordable Care Act Users Are Managing Tax Filing, Many Uninsured May Use New Enrollment Period

By :: February 24th, 2015

So far, most people with Affordable Care Act insurance subsidies seem to be filing their taxes without huge problems, despite the complexity of the process. However, about half of those who have filed returns with tax prep firm H&R Block and who owe a penalty for not having insurance, have expressed interest in purchasing exchange coverage, […]

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Better Ways to Link the Affordable Care Act with Tax Filing Season

By :: February 23rd, 2015

The Obama Administration, finally acknowledging the seasonal mismatch between the Affordable Care Act’s open enrollment season and the ACA’s tax-based penalties for failing to have insurance, decided on Friday to create a new special enrollment season for this year only.  The new window will allow those who are subject to the penalty for 2014 ($95 […]

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Tax Subsidies May Not Help Start-Ups as Much as Lawmakers Think

By :: February 9th, 2015

Many tax subsidies help new businesses, especially those financed with borrowed money and organized to avoid the corporate income tax . However, large numbers of start-ups may not benefit from this largess, according to a new study by my Tax Policy Center colleagues Joe Rosenberg and Donald Marron. Startups   and those that lose money in […]

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Do Obama’s Corporate Tax Proposals Add Up?

By :: February 4th, 2015

The tax proposals in President Obama’s 2016 budget combine two interesting ideas for international reform with his often-stated–but still vague– goal of a broad-based corporate tax overhaul. First, the framework: Obama has once again proposed cutting the corporate tax rate to 28 percent from the current 35 percent, with a special 25 percent rate for […]

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Obama's Failure to Kill 529 Plans May Say Less About Tax Reform Than You Think

By :: January 30th, 2015

After President Obama proposed, and rapidly abandoned, a plan to curb the tax advantages of Sec. 529 college savings accounts, several wise observers, including my friend David Wessel at Brookings, saw an object lesson for broad-based tax reform. To wit: If lawmakers can’t ditch a single $1 billion tax break, how could they possibly agree to […]

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How Obama’s Tax Plan Will Redistribute Income from the Very Rich To The Poor

By :: January 28th, 2015

President Obama’s latest tax package, which he’ll unveil in detail next week along with his new budget, would lower taxes for low-income households and significantly raise taxes for the highest income 1 percent—those making $663,000 or more, according to new Tax Policy Center estimates.  Middle-income households would see relatively modest changes in their tax bills. […]

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