Overall, the federal tax system is progressive. On average, households with higher incomes pay taxes that are a larger share of their income. But barring legislative action, the numerous sunsets and phase-ins that Congress has written into the tax code will result in a tax system that is in a...
Many taxpayers must calculate their federal income tax liability under two sets of rules: those applying to the regular income tax and those of the alternative minimum tax. If a taxpayer owes more tax under the alternative rules, then the difference is paid as AMT. The AMT hits people in some...
Policymakers are considering modifications to the tax treatment of employer-sponsored insurance (ESI) as a way to raise revenue to help pay for health reform and provide incentives to reduce health care costs. Understanding how current subsidies work is important to assessing health reform...
Some tax proposals would reduce the marginal corporate tax rate. Others would boost the top individual rate. Although a differential between corporate and individual rates could reduce the overall tax on distributed corporate income, it could also enable higher-income taxpayers to shelter income...
Tax Notes, July 27, 2009. Leonard E. Burman is a fellow at the Urban Institute and director of the Urban-Brookings Tax Policy Center. He previously served as deputy assistant secretary for tax analysis at the Treasury Department from 1998 to 2000 and as senior analyst at the Congressional Budget...
The largest tax preferences for housing, health care, and retirement saving reduce federal revenues by about 3 percent of GDP. They raise after-tax income proportionally more for higher income groups than lower income groups, but raise income proportionately less for those at the very top. The...
In a Washington Times op-ed, Len Burman explains why even this gloom-and-doom outlook is "wildly over-optimistic." The latest CBO budget outlook predicts a bleak scenario if we don't change our current policies.
Washington Post op-ed, July 9, 2009. Employer-paid health insurance is entirely tax-free a break that will cost the Treasury about $250 billion this year. Len Burman looks at tax-free health insurance provided by employers.
Los Angeles Times op-ed, July 8, 2009. In the immediate future, policymakers will face a delicate balancing act between encouraging economic recovery and establishing fiscal sustainability. Alan J. Auerbach and William G. Gale examine the economic challenges facing the U.S.
Nearly half of all tax units will pay no income tax in 2009. The fraction of non-taxpayers differs widely, depending on income, tax filing status, and whether the unit is elderly or contains children.
The Distribution of Federal Taxes, 2009-12
Overall, the federal tax system is progressive. On average, households with higher incomes pay taxes that are a larger share of their income. But barring legislative action, the numerous sunsets and phase-ins that Congress has written into the tax code will result in a tax system that is in a...
AMT Coverage by State, 2007
Many taxpayers must calculate their federal income tax liability under two sets of rules: those applying to the regular income tax and those of the alternative minimum tax. If a taxpayer owes more tax under the alternative rules, then the difference is paid as AMT. The AMT hits people in some...
Tax subsidies for private health insurance: Who benefits and at what cost?
Policymakers are considering modifications to the tax treatment of employer-sponsored insurance (ESI) as a way to raise revenue to help pay for health reform and provide incentives to reduce health care costs. Understanding how current subsidies work is important to assessing health reform...
Mitigating the Potential Inequity of Reducing Corporate Rates
Some tax proposals would reduce the marginal corporate tax rate. Others would boost the top individual rate. Although a differential between corporate and individual rates could reduce the overall tax on distributed corporate income, it could also enable higher-income taxpayers to shelter income...
Conversations: Leonard Burman
Tax Notes, July 27, 2009. Leonard E. Burman is a fellow at the Urban Institute and director of the Urban-Brookings Tax Policy Center. He previously served as deputy assistant secretary for tax analysis at the Treasury Department from 1998 to 2000 and as senior analyst at the Congressional Budget...
Distributional Effects of Tax Expenditures
The largest tax preferences for housing, health care, and retirement saving reduce federal revenues by about 3 percent of GDP. They raise after-tax income proportionally more for higher income groups than lower income groups, but raise income proportionately less for those at the very top. The...
Washington Times Op-Ed: Catastrophic Budget Failure
In a Washington Times op-ed, Len Burman explains why even this gloom-and-doom outlook is "wildly over-optimistic." The latest CBO budget outlook predicts a bleak scenario if we don't change our current policies.
Give Up A Benefit, Gain Jobs
Washington Post op-ed, July 9, 2009. Employer-paid health insurance is entirely tax-free a break that will cost the Treasury about $250 billion this year. Len Burman looks at tax-free health insurance provided by employers.
Here Comes the Next Fiscal Crisis
Los Angeles Times op-ed, July 8, 2009. In the immediate future, policymakers will face a delicate balancing act between encouraging economic recovery and establishing fiscal sustainability. Alan J. Auerbach and William G. Gale examine the economic challenges facing the U.S.
Who Pays No Income Tax?
Nearly half of all tax units will pay no income tax in 2009. The fraction of non-taxpayers differs widely, depending on income, tax filing status, and whether the unit is elderly or contains children.