Tax Expenditures

"Fixing the Debt: Reforming the Tax Code and Federal Health Spending" Recap

Yesterday, the Fix the Debt Campaign had a event with two roundtables bringing together many health policy and tax experts from across the political spectrum to discuss two of the central issues involved in the current budget negotiations.

Softening the Blow on the Charitable Deduction

In a new paper yesterday, we showed how policymakers could raise revenue exclusively from higher earners without increasing rates. Specifically, we showed three models which would phase in different types of tax expenditures caps on income above $200,000 ($250,000 for households) in a way that raised revenue similar to what would be generated by allowing the upper-income tax cuts to expire.

Alternative Revenue Raisers from High Earners

As was the case two years ago, the 2001/2003 tax cuts will be a hot topic in the lame duck session. Democrats would like to extend the full tax cuts only for people making less than $250,000, while Republicans would prefer to extend them fully for most everyone (leaving out refundable tax credit expansions from 2009).

What's On Congress's Plate

First off, CRFB would like to congratulate President Obama and all of those who were elected and re-elected to the Senate and the House. CRFB is looking forward to continue working with policymakers from both sides of the aisle to help make deficit reduction a reality.

Wonkblog Rolls Out Individual Tax Reform Calculator

Over at Wonkblog, Dylan Matthews and Ezra Klein have worked with analysts at Citizens for Tax Justice and the Institute for Taxation and Economic Policy to create an individual tax reform calculator. The calculator comes in versions for both Governor Mitt Romney's plan and President Obama's plan.

Tax Reform is Very Hard

Recently, we released an analysis demonstrating that it is indeed possible to substantially reduce tax rates while still cutting the deficit. Despite some claims that repealing all tax expenditures could reduce the top rate to only 38% (or by only 4 percent), we showed that doing so would allow the top rate to fall to 23 percent while still allowing for over $1 trillion in deficit reduction.

More Analysis of Gov. Romney's Deductions Cap

After we analyzed a part of it two weeks ago, Governor Mitt Romney's tax plan is back in the news, with a proposed deduction cap as the subject of a new Tax Policy Center study. He had mentioned a $25,000 dollar cap on deductions as a possibility in his tax plan during the debate Tuesday night and has previously proposed a $17,000 cap.

Coburn Releases the 2012 "Wastebook"

Senator Tom Coburn (R-OK) yesterday released his "Wastebook" for 2012, a laundry list of government waste and inefficiency. Coburn finds 100 examples of government spending clearly not serving its designed purpose.  

Wastebook's examples include:

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.

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