Tax Expenditures

Bob Pozen Offers Corporate Tax Proposal

Much of the focus of broadening the tax base in tax reform is on tax expenditures. However, as both our corporate tax paper and our corporate tax calculator showed, there are many base-broadening options outside of tax expenditures.

How a Cap on Deductions Might Work

Update: Clint Stretch at Capital Gains and Games sketches out possibilities for base broadening in Gov. Romney's plan.

Taxpayers for Common Sense's $2 Trillion Plan to Avoid the Sequester

Yesterday the group Taxpayers for Common Sense released a report with over $2 trillion in deficit reduction. The report, "Sliding Past the Sequester," takes up the task of the Super Committee and puts forth a list of cuts to programs or measures that they deem are "inefficient, ineffective, or wasteful," adding up to $800 billion beyond the Super Committee's original requirement.

Feldstein: Capping Tax Expenditures Is the Way to Raise Revenue

In a Project Syndicate piece, former Chairman of President Reagan's Council of Economic Advisors Martin Feldstein reminds us about another idea to raise revenue from tax expenditures. Instead of going through each preference and figuring out the best course of action, it might be effective--and potentially politically easier--to cap the overall benefits taxpayers receive from tax expenditures.

Going Beyond Tax Expenditures

When we talk about tax reform which lowers the rate and broadens the base, the base-broadening portion of the equation usally focuses on tax expenditures. These deductions, exclusions, credits, and special rates are considered a departure from the normal tax code, and so a number of proposals have focused on reducing or eliminating them.

Event Recap: The Challenge of Pro-Growth Tax Reform

Today, the third forum of the "Strengthening of America—Our Children's Future" series was held in New York City on "The Challenges of Pro-Growth Tax Reform." Commenting on taxes as well as our unsustainable debt path were two panels; the first featuring notable economists Martin Feldstein and Lawrence Summers, while the second made up of business leaders—Honeywell CEO and Fiscal Commission member David Cote, CEO of SEI and Chairma

More on Capital Gains and Tax Reform

Last week, we featured a piece by CRFB Senior Policy Director Marc Goldwein discussing one option to reduce tax rates while maintaining progressitivity and raising $1 trillion in revenue: eliminating the special rates for capital gains along with other deductions. In theory, a lower tax on capital gains might be preferred in order to incentivize savings.

Capital Gains and Tax Reform

Yesterday, the House Ways and Means Committee and te Senate Finance Committee held a joint hearing on tax reform and the tax treatment of capital gains. Base broadening tax reform with the payoff of lower rates is one of the key components of both the Simpson-Bowles and Domenici-Rivlin plans. But in order to get the lower rates in a fiscally responsible way, everything must be on the table, and that includes capital gains. 

MY VIEW: Laura Tyson

In today's Financial Times, former chair of the Council of Economic Advisors durign President Clinton's Administration and CRFB board member Laura Tyson writes that tax reform represents a deficit reduction opportunity that both parties can agree on.

Mixed News for Tax Reform

Reports today about the Republican Party's platform committee yields some good news and bad news for tax reform. First, the good news. The Wall Street Journal reports that the platform committee rejected an amendment that would call for no changes to be made to the mortgage interest deduction.

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