Tag: ‘tax revenues’

CBO Sees a Big Increase in Individual Income Tax Revenues Over the Next Decade

By :: August 27th, 2015

In its semi-annual fiscal update released this week, the Congressional Budget Office projects that federal revenues will remain flat over the next decade, while spending—mostly for health care and Social Security—will rise. The result: Budget deficits, which have been declining in recent years as the economy has grown, will once again start to rise. But […]

Read More

Is Dynamic Scoring of Tax Bills Ready For Prime Time?

By :: January 26th, 2015

The House has instructed the Joint Committee on Taxation and the Congressional Budget Office to factor in the macroeconomic effects of tax law changes when calculating the official budget score of revenue bills. But are existing models up to the task of what’s commonly called dynamic scoring? A group of experts assembled today by the […]

Read More

Taxes and Spending Return To “Normal”-- But Not For Long

By :: October 16th, 2014

Yesterday, the Treasury Department reported that the deficit for Fiscal Year 2014, which ended on Sept. 30, fell to $483 billion, or about 2.8 percent of Gross Domestic Product. This being Washington, the report was hailed as either an enormous success or dismissed as meaningless.  Who is right? Is it good news or bad news? […]

Read More

The Tax Man Cometh, But Sometimes Collects Less

By :: June 30th, 2014

The FATCA wait is over. The Foreign Account Tax Compliance Act goes into effect tomorrow. It is designed to prevent tax evasion by US citizens with more than $50,000 held in foreign banks, investment funds, and other institutions. China is the latest nation to join about 80 other jurisdictions in the implementation and enforcement of […]

Read More

Why Most Tax Extenders Should Not Be Permanent

By :: April 3rd, 2014

What to do about the tax extenders—or, as my colleague Donald Marron calls them, the “tax expirers”? Restoring the current crop (most of which expired on December 31) for 10 years would add about $900 billion to the deficit. House Ways & Means Committee Chair Dave Camp (R-MI) and Senate Finance Committee Chair Ron Wyden […]

Read More

Dave Camp’s Plan for the Expired Tax Provisions: An Almost-Good Idea

By :: March 25th, 2014

House Ways & Means Committee Chair Dave Camp (R-MI) has a plan for what to do with scores of now-expired tax subsidies that are sitting in Congress’ lap. He wants to review each one on its merits and either make it permanent or (by implication at least) kill it. Camp is on to something, although […]

Read More

Fiscal Reality Check: Will Congress Pay for the Tax Extenders and the Doc Fix?

By :: March 20th, 2014

After it returns from Spring Break next week, Congress may face two big fiscal reality checks. It will have to decide whether to temporarily extend scores of expiring tax provisions and what to do about permanently adjusting the formula Medicare uses to pay physicians (the “doc fix”). Combined, these two measures would add about $65 billion to the […]

Read More

Individual Income Taxes May Soon Generate Half of All Federal Tax Revenue

By :: February 6th, 2014

Over the next decade, the individual income tax will be the fastest growing source of federal revenue, according to new estimates by the Congressional Budget Office. In fact, the individual income tax will pretty much be the only revenue source likely to increase significantly over the next decade.  As a result, it will generate more […]

Read More

As Budget Talks Start, Beware the Bogus Revenue Hikes

By :: October 31st, 2013

As House and Senate budget negotiators sit down (eight months late), the inevitable issue of new revenues has already raised its head. Predictably, Democrats insist that any fiscal deal include new taxes. Equally predictably, Republicans demand that it must not. But behind the scenes, Washington’s wink-and-nod crowd thinks it has a solution: Raise new tax […]

Read More

One Modest Path to a No-Drama Budget Deal

By :: October 17th, 2013

The conventional wisdom is that next January, Congress and President Obama will be in exactly the same place they’ve been for most of the past three weeks—deep in government shutdown mode. The argument: The recent fiscal battles that ended with last night’s short-term deal to reopen the government and reauthorize Treasury borrowing  buys time but […]

Read More