Taxes

Good News for a Deal?

A Washington Post article late last week detailed a number of current Republican members of Congress or Congressional candidates who are foregoing the "no new taxes" pledge circulated by Americans for Tax Reform. Signs that the seemingly ubiquitous pledge is fading in popularity are good for the purpose of getting a deal on deficit reduction that tackles all parts of the budget. Here's one example of a House candidate eschewing the pledge:

The Wrong Fight on Taxes

The Hill has an article today detailing infighting within the Democrats over what to do with the 2001/2003 tax cuts. The position expressed by President Obama and many Democrats for years has been to extend the tax cuts only for people making less than $250,000, but a growing contingent seems to favor upping that threshold to $1 million, including House Minority Leader Nancy Pelosi (D-CA).

How to Make a Deal, Tax Reform Edition

In a blog post cross-posted at Tax Policy Center and Forbes, Howard Gleckman summarizes a talk that American Action Forum president and former CBO di

Tax Policy Center Event Discusses Taxes on the Financial Sector

When discussing new types of revenue or tax structures for the federal government to consider the other month, we touched on financial sector taxes as one of those options. The idea has caught on in Europe, with many countries and the European Commission proposing taxes of these sorts, although UK Prime Minister David Cameron has opposed it over concerns about its effect on growth.

House GOP Floats 2-Stage Process for Tax Reform

Via the Washington Post, it seems that the House majority is looking at creating a fast track procedure for passing tax reform in 2013. This will enable a tax reform bill to be passed by an up-or-down vote with no amendments once it is formulated. 

Both Sides of "Taxmaggedon"

Former Sen. Judd Gregg (R-NH) weighs in on the impact of "taxmaggedon" in The Hill today. While the tax increases would likely lead to more revenue, he said, the sudden rise of the payroll tax, expiration of the 2001/2003 tax cuts, and other tax increases could have a devastating impact on a still weak economy. Gregg explains:

The Temporary Budget

Over at Wonkblog, Sarah Kliff points out that the Affordable Care Act (ACA) may contain a new "doc fix" -- only this time in Medicaid. The current "doc fix" in Medicare cancels out huge scheduled physician payment cuts as required under law by the Sustainable Growth Rate (SGR) formula. Since it is very expensive to override the SGR permanently (about $300 billion over ten years), Congress usually just enacts temporary extensions.

How Might the Fiscal Cliff Play Out?

This week’s The Economist offers another analysis of the end-of-year fiscal cliff of tax increases and spending cuts that the United States faces under current law. The article also explores how "the election will determine whether a nasty dose of austerity can be avoided."

Brookings Institution Comments on Tax Reform

As the topic of tax reform will be heating up this year, five analysts from the Brookings Institution's Hamilton Project have released a paper called "A Dozen Economic Facts About Tax Reform." It is certainly a useful primer on how the tax system has changed over time and the promise and difficulties involved in changing it.

Those dozen facts are:

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