Rule #1 of tax reform: Tax reform does not raise taxes. The budget resolution sponsored by Representatives Jim Cooper (D–TN) and Steve LaTourette (R–OH) breaks this rule. In reality, it is a massive tax hike of nearly $2 trillion, according to Americans for Tax Reform. The Cooper–LaTourette budget follows the …
President Obama’s infamous “Buffett Rule,” which would set a 30 percent minimum effective tax rate for families and businesses with incomes greater than $1 million, would raise a paltry $47 billion over 10 years according to a recent report by the Joint Committee on Taxation. During that same timeframe, President …
In a recent article titled “Hill Weighs Tax Trade-offs,” Politico reports that Congress is considering lowering the corporate tax rate and replacing the lost revenue with higher tax rates on capital gains and dividends. But the article cites no “Hill sources” considering such an ill-conceived swap. There are only vague …
One reason economists sometimes compare themselves to astrologers is that their forecasts are often equally accurate. But when it comes to analyzing government policy, economists have trouble even figuring out what happened in the past. Case in point: The most recent Congressional Budget Office (CBO) report of President Obama’s $831 …
The Congressional Budget Office (CBO) released its outlook for the federal budget last week. According to the CBO’s “Alternative Fiscal Scenario,” tax receipts will match their historical average in 2017, when revenue will be 18 percent of gross domestic product (GDP). Receipts will continue growing after that. CBO’s alternative scenario …
On December 31, a set of approximately 50 tax-reducing provisions commonly referred to as the “tax extenders” expired. These provisions, which apply to both individuals and businesses, include popular measures such as the Research and Experimentation credit for businesses and the optional deduction for state and local sales taxes for …
Tax hikes were the focal point of the contentious, failed supercommittee negotiations designed to reduce the national debt by at least $1.2 trillion. Democrats wanted massive tax hikes. Republicans flirted with a tax reform deal lowering rates and closing loopholes. But the fact that tax hikes were at the center …
