Tag: ‘tax rates’

On Residence, Retirement, and Economic Records

By :: October 20th, 2014

Congress is in recess through the mid-term elections. The Daily Deduction will post each Monday until then.  What’s a multinational to do? Where is it to go?  Senator Dick Durbin and Senate Finance Committee Chair Ron Wyden seem pleased that Chicago-based AbbVie’s  decided to drop its deal with Dublin-based Shire. But other inversion deals continue […]

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Mike Lee’s Tax Plan: An Intriguing Idea That Would Add $2.4 Trillion to the Deficit

By :: March 12th, 2014

An ambitious tax reform plan proposed by Sen. Mike Lee (R-UT) would provide generous new tax credits for families with children and repeal the Alternative Minimum Tax, while at the same time eliminating the standard deduction and nearly all itemized deductions. More than 60 percent of households would pay lower taxes than under current law […]

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Dave Camp’s Tax Plan: A Brave Start But Lots of Gimmicks

By :: February 26th, 2014

Give House Ways & Means Committee Chair Dave Camp (R-MI) all the credit in the world for years of hard work developing his tax reform plan. Just don’t look too hard at the blueprint, which he released this afternoon. On one level, it is a serious framework for reform. For individuals, it would consolidate and […]

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Where Are Tax Rates Headed?

By :: December 12th, 2013

Effective tax rates have been rising since 2009 and will continue to rise for a few more years before they flatten out, according to Tax Policy Center projections. My TaxVox post earlier this week showed how average federal tax rates have changed over the past three decades. But that was based on a 30-year history […]

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CBO Finds Growing U.S. Income Inequality

By :: December 9th, 2013

Just as President Obama was decrying our nation’s rising income inequality, the Congressional Budget Office provided him with some new ammunition. CBO’s latest report on household income and taxes—which goes only through 2010—shows that the rich have indeed gotten richer. (Full disclosure: In my former life at CBO, I helped assemble these income and tax […]

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Beware of Tax Reform That Promises Deep Rate Cuts

By :: August 8th, 2013

Two new studies show just how hard a time Congress will have trying to slash tax rates without adding trillions of dollars to the budget deficit and producing a massive tax windfall for the highest-income American households. Last week, the congressional Joint Committee on Taxation estimated that a tax plan that cuts individual rates to […]

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A Tiny Little Blog Post on a Tiny Little Tax Bracket

By :: January 17th, 2013

Weird Tax Fact of the Day: The fiscal cliff deal (aka the American Taxpayer Relief Act of 2012) created what may be the world’s tiniest tax bracket. Under the new law, singles face a rate of 35 percent if their taxable income falls between $398,350 and $400,000. The bracket covers a grand total of $1,650. […]

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Congress Kicks the Fiscal Can off the Front Stoop

By :: January 1st, 2013

In the end, it looks like Congress isn’t even going to kick the fiscal can down the road. Assuming the House passes the deal agreed to by the Senate on New Year’s Eve, lawmakers will barely get that battered tin container it off the front stoop. The agreement preserves nearly all of the 2001-2010 tax […]

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Should Working Class Families Pay Higher Tax so High Income People Can Pay Less?

By :: December 20th, 2012

Somehow, the fiscal cliff tax debate has taken a truly weird turn. No, not the politics, which long ago became a parody of Washington deal-making at its worst. It is the policy that has gotten strange: Democrats and Republicans seem hell-bent on protecting millions of high-income people from deficit-cutting tax hikes. President Obama started all […]

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What Adjusting the Price Index Would Mean for Taxpayers

By :: December 18th, 2012

President Obama and House Speaker John Boehner may be close to agreeing on a plan that, among other things, would revise the way government programs are adjusted for inflation. Most attention is focused on what this means for Social Security recipients. But the Tax Policy Center estimates that changing the cost-of-living measure would also result […]

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