Taxes

A "Dynamic" Amendment to the Senate Budget

Among the many amendments that were voted on to the Senate budget resolution, one caught the eye of POLITICO: Sen. Rob Portman's (R-OH) amendment to have the Congressional Budget Office/Joint Committee on Taxation use dynamic scoring.

Examining the Domestic Production Activities Deduction

It is well known that the corporate tax code is littered with tax provisions that cost the government revenue. Today, the U.S. has the highest top marginal rate in the world, discouraging growth and investment, and a complex corporate code that diverts resources from more productive purposes and creates disincentives. While some tax provisions may be serving a legitimate purpose, there are others that provide spillovers beyond lawmakers' original intent.

Chairman Camp Eyes State and Local Tax Deduction

Yesterday, House Ways and Means Committee Chairman Dave Camp (R-MI) took a hard look at the deduction for state and local income taxes at a hearing on tax expenditures that affect state and local governments.

Spending and Revenue in the Ryan Budget

Earlier today, Chairman Ryan released his FY 2014 budget, proposing a number of bold changes that would put debt on a downward path as a share of the economy. In addition to our initial analysis this morning, we also put out a press release reacting to it.

Revisiting the Distribution of Tax Expenditures

Tax expenditures are a frequent subject of this blog, as they are less visible than government spending due to the tax code's great complexity. But these provisions are costly, estimated at $1.3 trillion in forgone revenue in 2013 by the Joint Committee on Taxation, and should be better seen as government spending. However, due to the progressiveness of the tax code, most tax expenditures especially benefit upper income taxpayers.

Brookings Rethinks...New Revenue Sources

Throughout the week we have been breaking down the new report from the Brookings Institution's Hamilton Project, "15 Ways to Rethink the Federal Budget." Proposals have included reforms to the military, tax expenditures, Medicare,

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  • House Ways and Means Committee Presses Forward

    The Hill is reporting that the House Ways and Means Committee will take the next step in creating a broad tax reform plan by announcing 11 separate working groups on different components of reform. The working groups would be composed of members of both parties and will be used to lay the groundwork in these different areas, not necessarily making recommendations.

    The 11 working groups would cover the following topics:

    Camp Offers New Ideas on Financial Products Tax Reform

    Yesterday, House Ways and Means Committee Chairman Dave Camp (R-MI) released a Discussion Draft on reforming the tax treatment of financial products. This is the latest in the Committee’s efforts to seek input and feedback on elements of comprehensive tax reform legislation which they have been working on over the last few years.

    A Closer Look at Refundable Tax Credits

    Yesterday, CBO issued a report on refundable tax credits, examining many issues involved with the credits. The first refundable credit, the Earned Income Tax Credit, was created in 1975 to offset the payroll tax for low-income people. The number of refundable credits has increased to a high of 11 different credits in 2010, and 5 currently. The cost of these tax expenditures has also risen, reaching a high of $238 billion (in 2013 dollars) in 2008 due to many economic stimulus measures before falling to $150 billion this year.

    Ross Gets Specific on Tax Reform

    Yesterday, Rep. Dennis A. Ross (R-FL) introduced H.R. 243, otherwise cited as the Bowles-Simpson Plan of Lowering America's Debt (BOLD) Act, a bill that contains some policies found in the Simpson-Bowles plan. The BOLD Act includes some spending cuts -- such as reducing Congressional and White House expenditures by 15%, prohibiting earmarks, reducing federal travel, and imposing an additional 3-year pay freeze on federal workers and DOD civilians -- that could be undertaken to reduce the debt.

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