Adjusted gross income (AGI) reported on individual income tax returns dropped 12 percent between 2007 and 2009, but AGI reported by taxpayers with income of $1 million or more fell by near half. Lower realized capital gains, which are concentrated among the highest income groups, accounted for...
The federal government is larger than conventional budget measures suggest. Many tax preferences are effectively spending programs. Adding these preferences to federal outlays and receipts makes the government appear about 4 percent of GDP larger. The 1986 tax reform cut these benefits, but they...
In a contribution to the Christian Science Monitor, Donald Marron discusses the six-pack of expiring temporary tax cuts which could provide the incentive to reshape the tax code and boost the budget.
The statutory rate structure of the federal individual income tax the number and width of brackets and the level of rates has changed significantly over time, as has the distribution of taxpayers across rates. This article examines how the top statutory marginal tax rate changed at various...
The Auto IRA could improve retirement security for millions of workers while boosting America's saving rate, leading to improved living standards for future generations.
This paper analyzes three options to increase individual income tax rates to reduce the projected debt-to-GDP to 60% by 2020, 2025 or 2035. Option 1 increases all individual income tax rates, Option 2 increases only the top three rates, and Option 3 only the top two rates. Options are analyzed...
Leonard Burman's testimony before the Senate Budget Committee on tax reform to encourage economic growth, reduce the federal deficit, and to promote fairness.
We present new estimates of the budget outlook, incorporating the latest projections by the Congressional Budget Office. Although the official budget figures have improved relative to a year ago (primarily as a result of last summer's debt-limit deal and lower interest rate projections),...
A value added tax (VAT) with a broad base and a VAT that excludes food, housing, and medical care would both impose larger burdens as a share of income on low-income than on high-income taxpayers. A rebate aimed at low-income taxpayers would reduce their VAT burden more than exclusions of...
Changes in Reported Income, 2007-2009
Adjusted gross income (AGI) reported on individual income tax returns dropped 12 percent between 2007 and 2009, but AGI reported by taxpayers with income of $1 million or more fell by near half. Lower realized capital gains, which are concentrated among the highest income groups, accounted for...
How Big is the Federal Government?
The federal government is larger than conventional budget measures suggest. Many tax preferences are effectively spending programs. Adding these preferences to federal outlays and receipts makes the government appear about 4 percent of GDP larger. The 1986 tax reform cut these benefits, but they...
US Budget: Fiscal Showdown or Kick the Can?
In a contribution to the Christian Science Monitor, Donald Marron discusses the six-pack of expiring temporary tax cuts which could provide the incentive to reshape the tax code and boost the budget.
Changes in the Distribution of Top Marginal Tax Rates, 1958-2009
The statutory rate structure of the federal individual income tax the number and width of brackets and the level of rates has changed significantly over time, as has the distribution of taxpayers across rates. This article examines how the top statutory marginal tax rate changed at various...
The Case for the Auto IRA
The Auto IRA could improve retirement security for millions of workers while boosting America's saving rate, leading to improved living standards for future generations.
Reducing the Deficit by Increasing Individual Income Tax Rates
This paper analyzes three options to increase individual income tax rates to reduce the projected debt-to-GDP to 60% by 2020, 2025 or 2035. Option 1 increases all individual income tax rates, Option 2 increases only the top three rates, and Option 3 only the top two rates. Options are analyzed...
Tax Reform to Encourage Growth, Reduce the Deficit, and Promote Fairness
Leonard Burman's testimony before the Senate Budget Committee on tax reform to encourage economic growth, reduce the federal deficit, and to promote fairness.
The Federal Budget Outlook: No News Is Bad News (Updated)
We present new estimates of the budget outlook, incorporating the latest projections by the Congressional Budget Office. Although the official budget figures have improved relative to a year ago (primarily as a result of last summer's debt-limit deal and lower interest rate projections),...
Can Tax Reform Save the Economy?
In a contribution to the International Economy magazine, Donald Marron offers his perspective on tax reform.
Implications of Different Bases for a VAT
A value added tax (VAT) with a broad base and a VAT that excludes food, housing, and medical care would both impose larger burdens as a share of income on low-income than on high-income taxpayers. A rebate aimed at low-income taxpayers would reduce their VAT burden more than exclusions of...