The Internal Revenue Service report on the 2006 tax gap, showing $385 billion (about 15 percent) of missing revenue, has made its rounds, sparking debate about the IRS budget. Just yesterday, National Taxpayer Advocate Nina Olson weighed in, saying that the IRS was over-burdened and under-funded for the job it was trying to do.
The most recent focus of President Obama's initiatives has been on "insourcing," or providing incentives to companies to bring jobs back to the US from overseas. According to CNN's article, the proposal, which will come in a few weeks and surely be included in the President's budget, will work on both sides of the equation: providing incentives to companies who bring business back home and eliminating incentives for companies that do the opposite.
Readers of this blog will be familiar with the Zero Plan from the Fiscal Commission's tax reform effort.
In evaluating the impact of Republican candidates' tax plans, Tax Policy Center has been an invaluable resource. After having scored Newt Gingrich's and Rick Perry's plans for revenue and distributional impact, they have done the same for Mitt Romney. The results are also similar, showing revenue losses even when compared against a baseline that extends the 2001/2003 tax cuts.
A few days ago, the Tax Policy Center (TPC) came out with a distributional and revenue score for Newt Gingrich's tax plan.
With so many provisions set to expire at the end of the year, CRFB has released a new paper that details what lawmakers have to extend and how they can do it in a fiscally responsible way.
This Saturday in Des Moines, Iowa, the Republican presidential candidates will debate for one of the last times before the Iowa caucuses on January 3. The Committee for a Responsible Federal Budget has several questions we would like to see the candidates answer.
Finding a way to extend the payroll tax cut, along with the many other expiring provisions this year, continues to be a dominating issue for Congress as 2011 comes to an end this month. A bipartisan proposal that includes a one-year extension of the tax cut was introduced yesterday by Sen. Susan Collins (R-ME) and Sen. Claire McCaskill (D-MO).
Breaking from traditional posts in our Spotlight on the States series, this blog focuses not on one state's budget, but on an issue that directly affects nearly every state's budget: the collection of sales tax from internet sources. For the past ten years, internet sales have skyrocketed as more and more shoppers take their shopping to the web.
Today, Senate Majority Leader Harry Reid (D-NV) unveiled another proposal for how to both extend and expand the payroll tax cuts and pay for them, building on the two proposals last week from Senate Republicans and Senate Democrats who both called for paying for any payroll tax cuts, albeit with different offsets. Both of those proposals were voted down in the Senate, so Reid's latest bill is an attempt at compromise.