Blog Profile / Business in The Beltway

Filed Under:Business & Finance
Posts on Regator:388
Posts / Week:1.2
Archived Since:February 28, 2011

Blog Post Archive

Border Adjusted Taxes And A ‘Big Border Tax’ Are Not The Same: Here Are Four Reasons Why

The House GOP's plan for border adjusted taxes and Donald trump's 'big border tax' sound like the same thing. They are not. Here's why.

Trump And House GOP’s Business Cash Flow Tax Could Actually Reduce Investment

Economists may wish that companies behaved in line with the assumptions in their traditional models, but Congress should construct tax policy based on how they actually do business. Here's why replacing the business income tax with a business cash-flow could depress economic growth.

Bye-Bye, Tax Reform; Hello, Tax Relief

Why The Trump Administration is ditching tax reform in favor of tax relief--and why it matters.

Trump’s Ever-Changing Tax Plan Changes Again

Last year, proposed an extremely aggressive plan that would have distributed big tax cuts to all Americans (but especially to the highest-income households) and added $11 trillion to the budget deficit over 10 years. Last month, he proposed Trump 2.0, which scaled back many of those proposals. Today, he rolled out Trump 3.0—an even more modest […]

We Are Learning Less About Trump’s Tax Plan, Not More

As presidential campaigns grind on, we often learn more details about each candidate’s policy agenda. But when it comes to ’s tax plan, we know far less today than we did 10 months ago. Last September, Trump unveiled a relatively specific tax plan. Today, that’s effectively been replaced by eight bullet points, only four of […]

Why Federal Taxes Are Progressive

The US federal tax system is highly, primarily because individual income tax rates rise sharply with income and refundable tax credits lead to negative income for households with low income. Updated estimates from the Tax Policy Center project that effective federal tax rates this year will range from 3.5 percent for households in the lowest-income quintile […]

A Closer Look At Those Who Pay No Income Or Payroll Taxes

The Tax Policy Center has updated its estimate of the percentage of Americans who pay no federal individual income taxes. And the number is: 44 percent—roughly what it was last year but well below the 50 percent peak during the Great Recession. TPC projects the fraction will decline slowly to 40 percent a decade from now. Of […]

Exxon — Yes, Exxon — Backs A Carbon Tax

The oil and gas giant has passively indicated support for a carbon tax for years, but now it's engaging in active advocacy, arguing that a single federal carbon tax would be preferable to a patchwork of state regulation and taxes. And that is why such a tax eventually could win widespread support of the business community—fundamentally changing the politics of carbon taxes.

What Trump’s Tax and Spending Plan Could Mean For Interest Rates

’s tax and spending plan could nearly triple interest rates and increase the federal government’s debt by $14 trillion by 2026, according to an estimate by Mark Zandi and his colleagues at Moody’s Analytics. In 2018, the federal government could be paying more than $900 billion in interest—nearly twice what it pays today. By 2026, […]

A New Way To Tax Corporations At The Shareholder Level

In a rare bit of bipartisan consensus, lawmakers of both parties agree that the U.S. needs to fix its corporate tax system. Statutory rates are among the highest in the world, yet many firms are so good at shifting income to low-tax jurisdictions that they pay effective tax rates in the single-digits.  But while the […]

Is A Salt Tax In America’s Future?

The guidelines on salt content that the FDA proposed this week are only voluntary targets. If they don't succeed in reducing salt consumption, policymakers might consider taking a step pioneered by Hungary: a salt tax.

EPA Has Designed Its Clean Power Plan To Evade Court Review

Will courts overturn the Obama administration's new regulations to reduce carbon dioxide emissions? It may not matter: The EPA is mandating extremely short compliance deadlines that will require utilities to commit to retiring plants and building costly new infrastructure long before the judicial review process will be completed.

Busting Five Tax Day Myths

Since Tax Day is tomorrow, it seems like a good time to bust a few myths about taxes. Here are five of the biggest misperceptions about the federal revenue code. Most of the info comes from two sources: the Tax Center’s Tax Topics (a trove of great information about who pays what) and the IRS2014 […]

For Most Households, It’s About the Payroll Tax, Not the Income Tax

While policymakers obsess about the income tax, they often lose sight of an important detail: For two-thirds of households, the levy that matters most is the payroll tax. According to a new report by the Joint Committee on Taxation, the 80 million tax filers making $40,000 or less will collectively pay no federal income tax and many […]

The Medicare ‘Doc Fix’ That Isn’t

The bill would repeal cost controls Congress never really supported, and by changing financial incentives, it holds the faint promise of improving the quality of care for seniors. But it won't fix the long-term problem of how Medicare compensates doctors and is unlikely to control program costs. Show More Summary

Dynamic Scoring Forum: Three Things You Should Know About Dynamic Scoring

The House recently changed the rules of budget scoring: The Congressional Budget Office and the Joint Committee on Taxation will now account for macroeconomic effects when estimating the budget impacts of major legislation. Here are three things you should know as we await the first official dynamic score. 1. Spending and regulations matter, not just taxes […]

Better Ways to Link the Affordable Care Act with Tax Filing Season

The Obama Administration, finally acknowledging the seasonal mismatch between the Affordable Care Act’s open enrollment season and the ACA’s tax-based penalties for failing to have insurance, decided on Friday to create a new special enrollment season for this year only.  The new window will allow those who are subject to the penalty for 2014 ($95 […]

Tax Subsidies May Not Help Start-Ups as Much as Lawmakers Think

Many tax subsidies help new businesses, especially those financed with borrowed money and organized to avoid the corporate income tax . However, large numbers of start-ups may not benefit from this largess, according to a new study by my Tax Center colleagues Joe Rosenberg and Donald Marron.   and those that lose money in their early […]

Do Obama’s Corporate Tax Proposals Add Up?

The tax proposals in President Obama’s 2016 budget combine two interesting ideas for international reform with his often-stated–but still vague– goal of a broad-based corporate tax overhaul. First, the framework: Obama has once again proposed cutting the corporate tax rate to 28 percent from the current 35 percent, with a special 25 percent rate for […]

Is Dynamic Scoring of Tax Bills Ready For Prime Time?

The House has instructed the Joint Committee on Taxation and the Congressional Budget Office to factor in the macroeconomic effects of tax law changes when calculating the official budget score of revenue bills. But are existing models up to the task of what’s commonly called dynamic scoring? A group of experts assembled today by the […]

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