The 2001 tax act was only one in a long series of tax laws complicating an already byzantine tax system. Ever the bridesmaid, simplification seems never to get the attention it deserves, no matter which political party is in powermainly because broader agendas are always being pursued.
[Contra Costa Times] Economics can sometimes go round the bend. For instance, in theory, you could avoid the drawbacks of taxes - discouraging work and saving and encouraging tax shelters - by taxing people randomly. The idea is that you can't avoid taxes if you can't anticipate them....
Senior Fellow Eugene Steuerle argues that in a world with multiple transfer and tax programs, one can't solve the issue of how to set tax rates unless the tax and spending sides of the budget are analyzed together, and unless phaseouts of various tax and expenditure benefits are considered along...
Senior Fellow Eugene Steuerle describes how tax legislation in 2001 brought to light the difficulty with trying to deal with only one side of the budget at a time, especially with regard to the progressivity issue.
With support from the Bush administration, the Federal Reserve Board Chairman, and Congress, a major cut in the federal income tax is almost certain. The question now is what type of cut it should be. Proponents often speak as though all tax cuts would benefit all groups. Not all income tax cuts...
[Financial Times] In many ways, the debate over the tax bill was simply a warm-up for the much larger budgetary issues that Congress and President George W. Bush must face over the next few years. There is little doubt that if healthcare and retirement spending increase as scheduled,...
The Alternative Minimum Tax albatross just keeps getting bigger and bigger and neither political party yet wants to take responsibility. Fixes are possible, but they require compromise over articles of faith for both parties.
[New York Times] President Bush will sign his long-promised tax cut today. But conservatives shouldn't break out the champagne just yet, nor should liberals start taking their antidepressants. Passing the cuts was easy. Mesmerized by projections of mountainous surpluses, few legislators...
[Houston Chronicle] Why is the tax code so complicated? Because whenever politicians face important tax policy choices, they always compromise with more complexity. That way they can avoid painful trade-offs.
Tax Simplification
The 2001 tax act was only one in a long series of tax laws complicating an already byzantine tax system. Ever the bridesmaid, simplification seems never to get the attention it deserves, no matter which political party is in powermainly because broader agendas are always being pursued.
New Tax Laws A Bizarre and Confounding Mix
[Contra Costa Times] Economics can sometimes go round the bend. For instance, in theory, you could avoid the drawbacks of taxes - discouraging work and saving and encouraging tax shelters - by taxing people randomly. The idea is that you can't avoid taxes if you can't anticipate them....
The Merger of Tax & Expenditure Policy in the 2001 Tax Legislation (Part 2 of 2)
Senior Fellow Eugene Steuerle argues that in a world with multiple transfer and tax programs, one can't solve the issue of how to set tax rates unless the tax and spending sides of the budget are analyzed together, and unless phaseouts of various tax and expenditure benefits are considered along...
The Merger of Tax & Expenditure Policy in the 2001 Tax Legislation (Part 1 of 2)
Senior Fellow Eugene Steuerle describes how tax legislation in 2001 brought to light the difficulty with trying to deal with only one side of the budget at a time, especially with regard to the progressivity issue.
Designing Tax Cuts to Benefit Low-Income Families
With support from the Bush administration, the Federal Reserve Board Chairman, and Congress, a major cut in the federal income tax is almost certain. The question now is what type of cut it should be. Proponents often speak as though all tax cuts would benefit all groups. Not all income tax cuts...
Spending is Key to Tough Tax Questions
[Financial Times] In many ways, the debate over the tax bill was simply a warm-up for the much larger budgetary issues that Congress and President George W. Bush must face over the next few years. There is little doubt that if healthcare and retirement spending increase as scheduled,...
Moving Beyond the Fight Over the Alternative Minimum Tax
The Alternative Minimum Tax albatross just keeps getting bigger and bigger and neither political party yet wants to take responsibility. Fixes are possible, but they require compromise over articles of faith for both parties.
Don't Count on That Tax Cut
[New York Times] President Bush will sign his long-promised tax cut today. But conservatives shouldn't break out the champagne just yet, nor should liberals start taking their antidepressants. Passing the cuts was easy. Mesmerized by projections of mountainous surpluses, few legislators...
What Next if Not Simplification?
Senior Fellow Eugene Steuerle argues for simplification as a main goal of tax reform.
Think FRED: Tax Cuts Just Add to Complexity
[Houston Chronicle] Why is the tax code so complicated? Because whenever politicians face important tax policy choices, they always compromise with more complexity. That way they can avoid painful trade-offs.