tax policy center

Advanced Search

by Topic:

by Author:

by Type:

by Date Range:
  From last wks


E-mail Newsletter

Enter your e-mail address to receive periodic updates on TPC publications and events.

> newsletter archive


Publications By Author

Author: Marron, Donald

1-10 of 48     Back to Authors Next>>

Should We Tax Internalities Like Externalities? (Research Report)
Donald Marron

Does the traditional rationale for taxing externalities also apply to internalities? Yes, if the goal is maximizing efficiency. Efficient taxes reflect any harms consumers overlook, whether to others or themselves. Yes with caution, if the goal also includes equity. Internality taxes fall most heavily on consumers who overlook future costs, a group that tends to have lower incomes. No if the goal is improving the well-being of people who consume harmful products. That paternalistic goal generally implies lower taxes than do efficiency or welfare maximization. In fact, the optimal paternalistic tax is often zero.

Published: 11/10/15
Availability: HTML | PDF

Taxing Carbon: What, Why, and How (Document)
Donald MarronEric ToderLydia Austin

The case for a carbon tax is strong. A well-designed tax could efficiently reduce the emissions that cause climate change and encourage innovation in cleaner technologies. The resulting revenue could finance tax reductions, spending priorities, or deficit reduction—policies that could offset the tax’s distributional and economic burdens, improve the environment, or otherwise improve Americans’ well-being. But moving a carbon tax from the whiteboard to reality is challenging. To help policymakers, analysts, and the public address those challenges, this report examines the what, why, and how of implementing a carbon tax and using the revenue it would generate.

Published: 06/25/15
Availability:   PDF

How Much Do Taxes Affect Startup Investment Incentives? (Commentary)
Donald MarronJoseph Rosenberg

In a contribution to the Policy Dialogue on Entrepreneurship blog of Joseph Rosenberg and Donald Marron examine how tax policy affects investment incentives for startup companies. Startups often make losses, and thus cannot make immediate use of the R&D tax credit, accelerated depreciation, and other tax benefits. The value of those benefits declines the longer startups have to wait to use them. This puts startups and fast-growing young firms at a disadvantage relative to established companies.

Published: 03/18/15
Availability: HTML

Tax Policy and Investment by Startups and Innovative Firms (Research Report)
Joseph RosenbergDonald Marron

Our tax system imposes widely varying tax rates on investments in different activities, favors debt over equity, and favors pass-throughs over corporations. Targeted tax incentives can lower the cost of capital for small businesses, startups, and those that invest in intellectual property. But those advantages are weakened, and sometimes eliminated, because businesses that invest in new ideas rely more on higher-taxed equity than do firms that focus on tangible investment and because startups are often limited in their ability to use tax deductions and credits. These limits can more than offset the benefit from tax incentives.

Published: 02/09/15
Availability:   PDF

The $300 Billion Question: How Should We Budget for Federal Lending Programs? (Research Report)
Donald Marron

Student loans, mortgage guarantees, and other lending programs create special challenges for federal budgeting. Under official budget rules, these programs are projected to bring in $200 billion over the next decade. Under an alternative, favored by many analysts, they appear to lose $100 billion. That $300 billion disparity confuses policy deliberations. In this report, Donald Marron proposes a new budgeting approach, known as expected returns, that would eliminate this confusion. The report critically reviews today’s budgeting approaches, identifies their flaws, and demonstrates how expected returns would improve budgeting for federal lending.

Published: 09/29/14
Availability:   PDF

A Better Way to Budget for Federal Lending Programs (Policy Briefs)
Donald Marron

Policy analysts have long debated how best to budget for student loans, mortgage guarantees, and other federal lending programs. Under official budget rules, these programs appear highly profitable; under an alternative, favored by many analysts, they appear to lose money. That discrepancy confuses policy deliberations. In this brief, Donald Marron proposes a new budgeting approach, known as expected returns, that would eliminate this confusion. Unlike existing approaches, expected returns accurately reports the fiscal effects of lending over time and provides a natural way to distinguish the fiscal gains from bearing financial risk from the subsidies given to borrowers.

Published: 09/29/14
Availability:   PDF

Tax Policy Issues in Designing a Carbon Tax (Article)
Donald MarronEric Toder

A carbon tax is a promising tool for discouraging the greenhouse gas emissions that cause climate change. In principle, a well-designed tax could reduce the risk of climate change, minimize the cost of emissions reductions, encourage innovation in low-carbon technologies, and raise new public revenue. But designing a real-world carbon tax poses significant challenges. We analyze those challenges from a public finance perspective, emphasizing three tax policy design issues: setting the tax rate, collecting the tax, and using the resulting revenue. The benefits of a carbon tax will depend on how policymakers address those issues. Copyright American Economic Association; reproduced with permission of the American Economic Review.

Published: 05/27/14
Availability: HTML | PDF

Tax Subsidies for Health and Housing Top $600 Billion (Article/Tax Facts)
Georgia IvsinDonald Marron

Tax expenditures will cost more than $1.4 trillion in fiscal year 2014. Those that support health and housing policies account for more than 40 percent of this number, or about $640 billion. These figures and their accompanying table are calculations derived from the tax expenditure estimates in the Treasury's Analytical Perspectives for the president's fiscal year 2015 budget

Published: 05/01/14
Availability:   PDF

Tax Issues Facing Small Business: Testimony before the Small Business Committee, United States House of Representatives (Testimony)
Donald Marron

In testimony before the House Small Business Committee, Donald Marron examines how tax policy affects small business. Complying with the tax code places a disproportionate burden on small businesses. On the other hand, small businesses are more likely to underpay their taxes, sometimes inadvertently, sometimes not. Tax reform could shift the relative tax burden of small and large businesses and recalibrate the balance between pass-through and C corporation structures. The effect will depend on the details and may vary among businesses of different sizes, industries, and organizational forms. Reform also provides an opportunity to reduce compliance burdens on small businesses.

Published: 04/09/14
Availability:   PDF

The Costs of Debt Limit Brinksmanship: Testimony before the Joint Economic Committee (Testimony)
Donald Marron

In this testimony before the Joint Economic Committee, Donald Marron offers Congress four pieces of advice as it faces the looming debt limit. First, Congress must increase the debt limit; failing to do so will result in severe economic harm. Second, Congress should not wait until the last minute to raise the limit; as we saw in 2011, such brinksmanship is economically and fiscally costly. Third, our economy remains fragile, so Congress should avoid self-inflicted shocks. Finally, the long-run budget outlook remains challenging and deserves attention, but the near-term fiscal priorities are funding the government and increasing the debt limit.

Published: 09/18/13
Availability:   PDF

1-10 of 48     Back to Authors Next>>