I propose and analyze four major revenue-neutral sets of federal income tax reforms, each of which would create a simpler and more progressive system. A new page on the Urban-Brookings Tax Policy Center Website allows anyone to compare their filing requirements and tax burdens under the...
Although the US tax code does not explicitly reference race or ethnicity, the federal individual income tax can create racial disparities when factors that affect tax liability are associated with race. This paper provides new evidence on racial differences in marriage tax penalties and bonuses...
Although the US tax code does not explicitly reference race or ethnicity, the federal individual income tax can create racial disparities when factors that affect tax liability are associated with race. This paper provides new evidence on racial differences in marriage tax penalties and bonuses...
Although it is generally blind with respect to race, the tax code can create racial disparities when factors that affect tax liability are correlated with race. In this working paper, we provide new evidence on racial differences in marriage penalties and bonuses in the income tax, using data...
On June 22, 2022, William Gale testified before the House Select Committee on Economic Disparity and Fairness in Growth in a hearing entitled, "Tackling the Tax Code: Evaluating Fairness, Efficiency, and Potential to Spur Inclusive Economic Growth."
Standard analysis of the corporate income tax assumes shareholders bear the burden of taxes on excess returns. But evidence shows that firms share rents with workers, especially high-income workers, which implies that these workers bear some of the burden as well. Using the Tax Policy Center...
Legislated changes affecting capital income have dramatically reduced the federal income tax base and revenues over the past 25 years. A significant share of capital income is never subject to tax. The massive “leakage” between the generation of economic income and the reporting of income on tax...
More than half of economic income generated by closely held businesses does not appear on tax returns and that ratio has declined significantly over the past 25 years. Tax data alone provide incomplete insights about business income taxation because the incomes reported to the IRS are already...
There is substantial evidence that income inequality in America rose throughout the late 20 th and early 21 st centuries. Influential research by Thomas Piketty,...
Most years, the Tax Policy Center celebrates Valentine Day with a whimsical analysis of the costs and benefits—tax-wise—of marriage. What’s new this year is that...
Congress should eliminate the debt ceiling this year. It serves no useful purpose. It doesn’t contribute to fiscal discipline, and breaching it entails large, potentially,...
Recent analysis by the nonpartisan Joint Committee on Taxation (JCT) shows the impact of several tax pieces included in the Inflation Reduction Act (IRA). The...
Debates about corporate income tax cuts follow a familiar script. Republicans claim that rank-and-file workers benefit . Democrats argue that affluent shareholders reap the gains...
Over the past three decades, the United States has gone from taxing roughly half of closely held business (that is, firms other than corporations) and...
The murder of George Floyd, in May 2020, sparked a national reckoning and renewed attention to issues of racial equity and justice. This long-overdue awakening...
As of this morning, yields on 10-year Treasury bonds stood at 1.33 percent. The yield on TIPS bonds–which are adjusted for inflation–was negative. These astonishingly...
Last week, Congress and President Trump enacted the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest aid package in American history...
The Congressional Budget Office just projected a series of $1 trillion budget deficits—as far as the eye can see. Narrowing that deficit will require not...
Martin Feldstein, who died earlier this week, was an intellectual giant who transformed modern public finance and tax policy analysis. He also was a kind,...
