Senator Tom Coburn (R-OK) has released a new list of ten wasteful tax expenditures, totaling $130 billion over the next ten years. Whether it is tax breaks for NASCAR tracks, fishing tackle boxes, or films produced in the U.S., the list serves as a clear sign that there are plenty of places to look to raise revenue from tax expenditures. Coburn's list is below.
One option on the table that has great potential to be included in a final deal is the chained CPI. As we explain in our updated paper on the chained CPI, "Measuring Up," the current CPI overstates inflation because it doesn't account for substitution between different categories as relative prices change. Today, Marc Goldwein, CRFB's Senior Policy Director, further explained this policy in a CNN radio interview using the example of ham and turkey sandwiches. You can listen below:
Urban Institute scholar and CRFB board member Gene Steuerle writes in his blog The Government We Deserve that the current revenue proposals from both sides simply aren't enough to make a substantial dent in the deficit.
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.
Just as President Obama and the Republican leadership are trading offers, three think tanks--the Heritage Foundation, the Center for American Progress, and the Bipartisan Policy Center-- each offered ideas that could be used in the negotiations.
Tomorrow, the Campaign to Fix the Debt will be hosting a half-day event that will bring together tax, health, and budget experts for a series of discussions on pressing budget issues. The event will start at 8:30 AM and will feature remarks from former OMB director and current Senator Rob Portman (R-OH), Senate Finance Committee chair Max Baucus (D-MT), and National Economic Council Director Gene Sperling.
In a blog post on the White House's website, National Economic Council Director Gene Sperling and Deputy Director Jason Furman argue that the math of limiting deductions for high-earners dictates that an insufficient amount of revenue will be raised.
Yesterday, we discussed the myth that the poor would be spared by the fiscal cliff, with one of the reasons being the large tax increase at the end of the year. According to the Tax Policy Center, the poorest 20 percent of people would face a tax hike of $412, or a 3.7 percent reduction in their after tax income.
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).