The tax code limits the extent to which individuals may take advantage of the tax benefits associated with traditional and Roth IRAs. The only eligibility criteria for contributing to a Roth IRA are income and filing status. In contrast, eligibility for deducting contributions to a traditional...
Recent tax acts sharply lowered tax rates on long-term capital gains and dividend income. For millions of taxpayers, however, the alternative minimum tax limits the benefits from these cuts by increasing the effective marginal tax rates on capital gains and dividend income. The culprit is the...
I am happy to be here this morning to urge Congress to enact a stimulus package quickly. In brief, I believe that: A well-designed stimulus package is needed now as an insurance policy to reduce the risk of recession or mitigate its severity if it occurs; The compromise worked out by the...
Small business is the source of our entrepreneurial genius, creativity, and productivity. Nonetheless, a substantial portion of our economic activity occurs within large corporations, non-profits and public enterprises. This paper discusses how the federal income tax treats firms of different...
Relative to previous recessions, the 2001 recession was short and not very deep. Even so, it had a significant effect on the fiscal condition of state and local governments. This report examined how the recession affected state and local government spending on K-12 education in the three years...
Much of the state tax policy discussion during the past decade has centered on the performance of corporate income taxes and ways to restructure them. This report focuses on state responses to the weak corporate tax collections during the 2000-2003 period as well as to the revenue performance...
The key to well-designed stimulus is to ensure that it is timely, temporary and targeted the "three T" principles enunciated by economists as diverse as Harvard Professors Lawrence Summers and Martin Feldstein, Federal Reserve Chairman Ben Bernanke and Congressional Budget Office Director Peter...
Education expenditures are one of the largest spending areas for state and local governments, and perpupil expenditures have been growing over time. We examine trends in state aid for education and overall education spending and decompose the existing drivers behind growing state costs. We then...
New York Times, January 23, 2008 - Since 2001, official Washington's answer to every policy question has been the same. What should we do with a big surplus? Tax cuts. How do we beat back global terrorism? Tax cuts. Increase energy independence? Rebuild New Orleans? Expand health insurance...
In this article, C. Eugene Steuerle explores the political and budgetary pressures facing Charles Rangel, the House Ways and Means Committee Chairman, with regard to the Alternative Minimum Tax (AMT). He further analyzes various options to fix the AMT, the ramifications for Rangel, and the path...
Taxpayer Eligibility for IRAs
The tax code limits the extent to which individuals may take advantage of the tax benefits associated with traditional and Roth IRAs. The only eligibility criteria for contributing to a Roth IRA are income and filing status. In contrast, eligibility for deducting contributions to a traditional...
Tax Rates on Capital Gains and Dividends Under the AMT
Recent tax acts sharply lowered tax rates on long-term capital gains and dividend income. For millions of taxpayers, however, the alternative minimum tax limits the benefits from these cuts by increasing the effective marginal tax rates on capital gains and dividend income. The culprit is the...
The Need for a Stimulus Package Now
I am happy to be here this morning to urge Congress to enact a stimulus package quickly. In brief, I believe that: A well-designed stimulus package is needed now as an insurance policy to reduce the risk of recession or mitigate its severity if it occurs; The compromise worked out by the...
Does the Federal Income Tax Favor Small Business?
Small business is the source of our entrepreneurial genius, creativity, and productivity. Nonetheless, a substantial portion of our economic activity occurs within large corporations, non-profits and public enterprises. This paper discusses how the federal income tax treats firms of different...
Fiscal Problems and Education Finance
Relative to previous recessions, the 2001 recession was short and not very deep. Even so, it had a significant effect on the fiscal condition of state and local governments. This report examined how the recession affected state and local government spending on K-12 education in the three years...
Emerging State Business Tax Policy
Much of the state tax policy discussion during the past decade has centered on the performance of corporate income taxes and ways to restructure them. This report focuses on state responses to the weak corporate tax collections during the 2000-2003 period as well as to the revenue performance...
Options for Fiscal Stimulus
The key to well-designed stimulus is to ensure that it is timely, temporary and targeted the "three T" principles enunciated by economists as diverse as Harvard Professors Lawrence Summers and Martin Feldstein, Federal Reserve Chairman Ben Bernanke and Congressional Budget Office Director Peter...
State Education Spending: Current Pressures and Future Trends
Education expenditures are one of the largest spending areas for state and local governments, and perpupil expenditures have been growing over time. We examine trends in state aid for education and overall education spending and decompose the existing drivers behind growing state costs. We then...
Make the Tax Cuts Work
New York Times, January 23, 2008 - Since 2001, official Washington's answer to every policy question has been the same. What should we do with a big surplus? Tax cuts. How do we beat back global terrorism? Tax cuts. Increase energy independence? Rebuild New Orleans? Expand health insurance...
Rangel's AMT Riddle Continues
In this article, C. Eugene Steuerle explores the political and budgetary pressures facing Charles Rangel, the House Ways and Means Committee Chairman, with regard to the Alternative Minimum Tax (AMT). He further analyzes various options to fix the AMT, the ramifications for Rangel, and the path...