Federal Tax

Two years after passage of the Tax Cuts and Jobs Act (TCJA), the U.S. Treasury Department continues the process of proposing and finalizing regulations related to enforcement and administration of the reforms outlined in the law. The volume of regulations issued related to the TCJA highlights the scope of the change in tax law since
0 Comments
In less than two months, voters will cast their choice in the Iowa caucus to begin the process of selecting the next Democratic presidential candidate. The candidates currently in the top 3 polling positions—former Vice President Joe Biden, Senator Elizabeth Warren (D-MA), and Senator Bernie Sanders (I-VT)—have all proposed sweeping changes to the tax code,
0 Comments
Tonight’s Democratic Debate in Atlanta will see the remaining 10 candidates argue that they are the best choice as their party’s nominee in the 2020 presidential election. The candidates currently in the top 4 polling positions—former Vice President Joe Biden, Senators Elizabeth Warren (MA) and Bernie Sanders (I-VT), and South Bend Mayor Pete Buttigieg—have all
0 Comments
On a yearly basis the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called “bracket creep,” when people are pushed into higher income tax brackets or have reduced value from credits and deductions due to inflation, instead of any increase in real income. The IRS used to
0 Comments
As policymakers and presidential candidates consider proposals to enact a wealth tax on the wealthy, lost in the debates about tax avoidance, administrative challenges, and revenue projections is the impact on innovation and entrepreneurship. Contrary to the claims of wealth tax proponents, policymakers should consider the negative impact of wealth taxes on economic dynamism in
0 Comments
At least seven Democratic presidential candidates have proposed raising the corporate income tax rate this primary season. The December 2017 tax reform law lowered the corporate income tax rate from 35 percent to 21 percent. Increasing the rate would have a negative impact on the U.S. economy by raising the cost of investing in the
0 Comments
Last week, Representative Don Beyer (D-VA) and Senator Chris Van Hollen (D-MD) provided details on a proposed surtax on millionaires as part of an increased interest by policymakers to impose higher tax rates on high-income earners and the wealthy, with the goal of reducing economic inequality. The proposed surtax would levy a 10-percentage point surtax
0 Comments
Throughout the 2020 presidential election cycle, many Democratic candidates have suggested raising tax rates on corporations and individuals to address income inequality in the United States. Senator Elizabeth Warren (D-MA) has proposed returning the corporate rate to 35 percent and imposing a wealth tax in her “Medicare for All” plan. Senator Bernie Sanders (I-VT) is
0 Comments
A new proposal from Senator Elizabeth Warren (D-MA) to fund a $20.5 trillion increase in government health-care spending for a single-payer system overlooks how taxes interact and how they affect economic incentives. Her plan would create or increase many different taxes, but the proposal does not account for interactions across the different tax types. In
0 Comments
As the debate continues over the distribution of wealth and taxes, and what to do about rising inequality, it is important to consider how different researchers are measuring inequality and the implications these different methods have for the results. A recently revised study, “U.S. Inequality and Fiscal Progressivity—An Intragenerational Accounting,” highlights this importance. The study
0 Comments
Wednesday, the House Ways & Means Committee is expected to mark up H.R. 4742, sponsored by Representatives Thomas Suozzi (D-NY) and Peter King (R-NY). The bill proposes to levy a tax on nicotine at $50.33 per 1,810 mg. According to the Joint Committee on Taxation (JCT) it will raise $10 billion in revenue over the
0 Comments