Posts Tagged ‘tax reform’

Pressure, Power, and a New View on Cuts

Congress is in recess through the mid-term elections. Read the Daily Deduction each Monday until then.  Apple’s new products might not bend, but its tax deals are under some pressure. Later today, the European Union’s European Commission is expected to release its opening decision on Apple’s 1991 and 2007 deals with the Irish government: They […]

Don’t Count on Much Economic Growth From Individual Tax Reform…Or From Tax Rate Cuts

Can individual income tax reform that cuts rates and eliminates subsidies increase economic growth? How about tax cuts by themselves? The answer is: Maybe, but not by much, according to a new paper by the Tax Policy Center’s Bill Gale and Andrew Samwick, director of The Nelson A. Rockefeller Center for Public Policy and Social […]

How Much Would An Individual Tax Rate Cut Add to the Deficit, and Who Would Benefit?

Reducing tax rates is a guiding principal of most tax reform plans. Even Democrats who see reform partly as a tool to boost revenues agree that some money generated by eliminating tax preferences ought to go to rate reduction. But how much does Treasury lose when Congress reduces individual tax rates, and which taxpayers benefit the […]

Can Obama slow corporate inversions? Yes he can.

Politicians can debate whether corporate tax inversions are “unpatriotic” or simply a legitimate technique to reduce taxes–and commentators can argue over whether anything should be done to stop them. Experts also disagree about whether President Obama and his Treasury Secretary have the legal authority to write new rules to discourage inversions. In my view, on this last […]

Abuse of financial products by hedge funds

Today, I testified before the U.S. Senate Permanent Subcommittee on Investigations (the “Subcommittee”) on the abuse of structured financial products by hedge funds, in particular by the Renaissance funds. This is what I told the Subcommittee: Almost a century ago, Congress reduced the tax rate for long-term capital gains. Then, long-term meant holding assets for […]

Pensions and Tax Bases: Realities and Hopes

The thing about pension smoothing: The bumps always come back. Neither the Committee for a Responsible Federal Budget nor TPC’s Len Burman will suspend disbelief when it comes to the latest gimmick to patch the Highway Trust Fund. Maybe “stupid tax tricks” work politically but “pretending to raise revenue, while adding to our long-run fiscal […]

New TPC Analysis: What Dave Camp’s Tax Reform Plan Would Really Mean

In an extensive new analysis of House Ways & Means Committee Chair Dave Camp’s tax reform plan, my Tax Policy Center colleagues confirm his proposal would raise about the same amount of money over 10 years as current law and impose roughly the same tax burden across income groups as today’s revenue code. TPC also concluded that Camp’s […]

Highways, Pensions, Deficits and Reform: A Long and Winding Road

“Are we there yet?” It’s just a little (or a lot) further for the federal Highway Trust Fund. Congress just left for a week-long recess, leaving the Highway Trust Fund nearly empty. The Senate Finance Committee didn’t support Chairman Ron Wyden’s $9 billion tax-raising patch, in spite of Wyden’s willingness to drop some tax increases. […]

Close But No Cigar: The Politics of Class, Race, and Taxes

This week, the District of Columbia City Council approved a major tax reform bill. And, as it happens, some important—but unspoken– issues of race and class are underlying key changes to the revenue code. Earlier this year, the DC Tax Revision Commission proposed a broad rewrite of the city’s tax code, including two modest but […]

Dave Camp’s Great Bonus Depreciation Flip-Flop

Sadly, the House Ways & Means Committee has turned on its head a proposal by its chairman, Dave Camp (R-MI) to repeal bonus depreciation for business capital investment. Instead of scrapping the measure, which Congress originally passed in 2008 as a temporary anti-recession tonic, the panel has voted to make the tax break permanent. And, […]