As policymakers look to "Go Smart" in putting together a deficit reduction package, there is no better place to look than tax reform; and in particular, corporate tax reform.
Rick Perry's tax reform plan has inspired a lot of discussion in the past week, but it left people wondering how much revenue it would raise. He recently had a consulting firm run the numbers on his plan using both static and dynamic analyses. Here we will focus more on the static numbers. In a perfect world dynamic scoring would be the way to go, but there remains too much disagreement on how best to do it. And the analysis memo doesn't give enough insight into its methodology for us to judge.
Earlier today, Texas Governor and Republican presidential candidate Rick Perry announced details of his "Cut, Balance and Grow" plan for spending and tax reform.
The Tax Reform Act of 1986 turned 25 on Saturday, prompting a number of commentators to write their perspective on the reform. We will highlight three specifically, focusing on the lessons from the 1986 Act, the possible economic effects, and why we should/how we can produce a similar reform effort today.
Republican presidential candidate Herman Cain's economic plan received a lot of attention at Tuesday night's debate. Regardless of what one thinks about the plan itself, the fact that it generated so much discussion is a positive development. With so many voters justifiably concerned about the economy and yearning for their leaders to adopt sound policies that will spur growth in the short and long-run, the focus on Cain's plan underscores the dearth of concrete ideas from policymakers and the public's desire for action.
The usual story about the recent historical low in revenue we have seen over the past three years is due to the recession. After all, revenue was at 19 percent of GDP before the recession and is projected to rise back above its 40-year historical average later this decade (even with the 2001/2003 tax cuts extended).
If you've ever wanted to design your own corporate tax reform, now you can with our new Interactive Tax Reform Calculator. There is no question that the U.S. corporate tax system is badly in need of reform, and leaders in both parties have been pursuing this goal.
It's no secret that taxes will be a central element in national politics over the next fourteen months leading up to the Presidential election. With that in mind, Republican Presidential candidate Jon Huntsman is prepared to offer up a comprehensive tax reform plan.
Tax Policy Center has two sets of interesting tables that have just come out in the past few days. They offer some great information for those of you who are eager to brush up on your knowledge of the tax code.