The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) generally reduces marriage penalties for head of household filers marrying single filers, with combined incomes up to $80,000. The law's relevant marriage penalty provisions in order of effect are (1) the refundable, doubled...
[Nihonkeizai Shimbun] What can Japan learn from the United States' experience with deficit reduction? First and foremost, U.S. success in eliminating deficits would not have been possible without the support of a broad public consensus that focused on the long-run negative effects of...
When policy makers decide that they are going to grant a temporary write-off for new capital investments, they essentially conclude that its macroeconomic advantages exceed other alternatives. However, incentive effects apply more powerfully to established or old business than to new business...
The 2001 tax cut has been roundly criticized because so much of the benefit goes to the rich, but the bill also did much to help low- and middle-income families. Most notably, it increased the child tax credit and made it refundablethat is, available to families with incomes too low to owe...
In the early 1970s, a Democratic Congress and a Republican President (Nixon) became concerned about the lack of pension funding, vesting, and coverage for most Americans. They decided to do something about it. This president and Congress, I believe, are not less qualified or less concerned with...
Providing fiscal or tax subsidies to try to promote additional work and saving is a relatively modern notion. These subsidies may stimulate demand by putting more money in the economy, but they are designed primarily to affect behavior through incentives. Modern industrial economies like the U.S...
The collapse of Enron brings out many tales, but none motivate action more than images of workers who now are left with little or nothing in the way of retirement plan benefits. In response, President Bush has requested legislation that would essentially remove some bars that prevent workers...
How Marriage Penalties Change Under the 2001 Tax Bill
The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) generally reduces marriage penalties for head of household filers marrying single filers, with combined incomes up to $80,000. The law's relevant marriage penalty provisions in order of effect are (1) the refundable, doubled...
Fiscal Discipline Requires Public Support
[Nihonkeizai Shimbun] What can Japan learn from the United States' experience with deficit reduction? First and foremost, U.S. success in eliminating deficits would not have been possible without the support of a broad public consensus that focused on the long-run negative effects of...
Defining Tax Shelters and Tax Arbitrage
This brief looks at tax shelters and tax arbitrage, and how they are similar to and different from 1980s tax shelters.
Can Policymakers Time the Ending of Macroeconomic Incentives?
When policy makers decide that they are going to grant a temporary write-off for new capital investments, they essentially conclude that its macroeconomic advantages exceed other alternatives. However, incentive effects apply more powerfully to established or old business than to new business...
The Effect of the 2001 Tax Cut on Low- and Middle-Income Families and Children
The 2001 tax cut has been roundly criticized because so much of the benefit goes to the rich, but the bill also did much to help low- and middle-income families. Most notably, it increased the child tax credit and made it refundablethat is, available to families with incomes too low to owe...
Can Policymakers Time the Ending of Macroeconomic Incentives?
This brief considers focuses on the ending of temporary investment incentives.
Can Policymakers Time the Ending of Macroeconomic Incentives?
Should policymakers use capital expense deductions to help stabilize the economy?
Pension Reform Today and in 1974
In the early 1970s, a Democratic Congress and a Republican President (Nixon) became concerned about the lack of pension funding, vesting, and coverage for most Americans. They decided to do something about it. This president and Congress, I believe, are not less qualified or less concerned with...
Temporary Wage Subsidies
Providing fiscal or tax subsidies to try to promote additional work and saving is a relatively modern notion. These subsidies may stimulate demand by putting more money in the economy, but they are designed primarily to affect behavior through incentives. Modern industrial economies like the U.S...
Will Enron Lead to Enhanced Retirement Security?
The collapse of Enron brings out many tales, but none motivate action more than images of workers who now are left with little or nothing in the way of retirement plan benefits. In response, President Bush has requested legislation that would essentially remove some bars that prevent workers...