The reduction in individual income tax rates and the other tax cut provisions enacted in 2001 and 2003 were "sunset" at the end of 2010. Unless Congress acts to delay the expiration of the rate reductions, the top individual rate will rise from 35% in 2010 to 39.6% for 2011 and later years.
During the recent tax filing season, cable news and talk radio repeatedly discussed the Tax Policy Center's (TPC's) estimate that 47 percent of Americans would pay no federal income tax for 2009. However much of the commentary failed to explain why.
The value of the tax preference for pensions depends on the marginal tax schedule and on the tax treatment of income from assets held outside a pension account. We find that changes in U.S. tax law, especially the reduction in tax rates on capital gains and dividends, but also the decline in...
Capital income is subject to a wide variation in treatment under the tax code. Certain financial income, such as long-term capital gains and qualified dividends, is taxed at preferential rates.
This article, written for a lay audience, discusses the causes and consequences of catastrophic budget failure. When Americas ballooning federal debt becomes unmanageable, we might simply refuse to honor our obligations, triggering a worldwide financial collapse and an economic downtown that...
In 2011, the U.S. government will spend over $1 trillion on tax expenditures. These programs often fly under the radar of media and public opinion. This paper discusses obstacles to subjecting tax expenditures to the same scrutiny as direct outlays and offers some recommendations for...
This year's tax season controversy surrounds the Tax Policy Center's estimate that 47% of households do not owe income tax. The estimate has raised concerns about equity (nearly half of families free-riding on the rest of us) and civic responsibility (can democracy work when half of voters get...
This study simulates - for 23 metropolitan areas - the change in equilibrium housing prices due to the Obama Administration's recently-proposed tax reforms. While none of the President's proposed tax reforms are directed at changing the value of housing, it is clear that under certain...
This report examines the effects of imposing a new value added tax (VAT) in the United States and using the revenue raised to lower payroll tax and corporate income tax rates. We summarize how different forms of VAT operate and compare how a VAT, payroll tax, and corporate income treat different...
Top Federal Individual Income Tax Rates
The reduction in individual income tax rates and the other tax cut provisions enacted in 2001 and 2003 were "sunset" at the end of 2010. Unless Congress acts to delay the expiration of the rate reductions, the top individual rate will rise from 35% in 2010 to 39.6% for 2011 and later years.
Why Nearly Half of Americans Pay No Federal Income Tax
During the recent tax filing season, cable news and talk radio repeatedly discussed the Tax Policy Center's (TPC's) estimate that 47 percent of Americans would pay no federal income tax for 2009. However much of the commentary failed to explain why.
The Shrinking Tax Preference for Pension Savings: An Analysis of Income Tax Changes, 1985-2007
The value of the tax preference for pensions depends on the marginal tax schedule and on the tax treatment of income from assets held outside a pension account. We find that changes in U.S. tax law, especially the reduction in tax rates on capital gains and dividends, but also the decline in...
Capital Income by Tax Treatment
Capital income is subject to a wide variation in treatment under the tax code. Certain financial income, such as long-term capital gains and qualified dividends, is taxed at preferential rates.
Countdown to Catastrophe
This article, written for a lay audience, discusses the causes and consequences of catastrophic budget failure. When Americas ballooning federal debt becomes unmanageable, we might simply refuse to honor our obligations, triggering a worldwide financial collapse and an economic downtown that...
Government Spending Undercover
In 2011, the U.S. government will spend over $1 trillion on tax expenditures. These programs often fly under the radar of media and public opinion. This paper discusses obstacles to subjecting tax expenditures to the same scrutiny as direct outlays and offers some recommendations for...
The Myth of Income Tax Freeloading
This year's tax season controversy surrounds the Tax Policy Center's estimate that 47% of households do not owe income tax. The estimate has raised concerns about equity (nearly half of families free-riding on the rest of us) and civic responsibility (can democracy work when half of voters get...
Health mandate: It's just a tax break in disguise
CNNMoney.com. Len Burman discusses the health insurance mandate.
The Effect of Proposed Tax Reforms on Metropolitan Housing Prices
This study simulates - for 23 metropolitan areas - the change in equilibrium housing prices due to the Obama Administration's recently-proposed tax reforms. While none of the President's proposed tax reforms are directed at changing the value of housing, it is clear that under certain...
Effects of Imposing a Value-Added Tax To Replace Payroll Taxes or Corporate Taxes
This report examines the effects of imposing a new value added tax (VAT) in the United States and using the revenue raised to lower payroll tax and corporate income tax rates. We summarize how different forms of VAT operate and compare how a VAT, payroll tax, and corporate income treat different...