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Taxes

Economists For Keeping The Charitable Deduction
e21 Team | 2013-04-25

The federal income tax code is saddled with inefficient exemptions, deductions and credits. Streamlining them is an important policy goal, and Senator Max Baucus and Congressman Dave Camp, the respective Chairmen of the two tax writing committees in Congress, are in the process of working through an overhaul of the tax code to lower rates and remove distortionary deductions. Tax simplification is a universal goal, but it has thus far been elusive because what seems a special interest carve-out to many can seem to others the promotion of a valid public policy goal. One example is the deduction for charitable contributions. A group of over two hundred economists published an open letter to Congress as a full page ad in Politico on Thursday, April 25, arguing for the uniqueness of the charitable deduction, which is pasted below.

If Taxes Must be Raised, Raise Average Tax Rates
e21 Staff Editorial | 2012-12-06

In the debate on how best to resolve the so-called “fiscal cliff” of $600 billion of pending tax increases and spending cuts scheduled for January 1, 2013, President Obama is not only insisting on more tax revenue; he is demanding that this revenue be raised in the most economically counterproductive manner possible.

Brief Note on the 2001 Tax Cut vs. a 2013 Tax Cut
Reihan Salam | 2012-10-13

Late last month, Sahil Kapur of Talking Points Memo reported that the Romney campaign had pushed back against Kevin Hassett’s suggestion that a Romney administration would sacrifice rate cuts to preserve progressivity and revenue neutrality:

e21 Debate Primer: What Should We Really Be Asking Candidates?
e21 contributors and staff including Charles Blahous, Stephen Goldsmith, David Malpass, James C. Capretta and Jennifer Pollom | 2012-10-02

In preparation for the first in a series of Presidential and Vice Presidential debates beginning on October 3, e21 contributors and staff offer the following potential debate questions to both President Obama and Governor Romney in order to educate the electorate on substantive pressing issues and to help voters formulate more informed opinions. Below you’ll find a short guide to what a voter should consider in the coming election.

Tax Cuts, Spending Multipliers, and Economic Growth
e21 Staff Editorial | 2012-09-24

Few policy issues generate more controversy among analysts and policymakers than the economic effects of tax cuts and increases in government spending. These core fiscal policy questions are nearly always at the forefront of the policy debate, but that is especially the case today because of the looming “fiscal cliff” of $600 billion in tax increases and spending cuts set to take effect at the end of the year.

Difficult Tax Scenarios Add to US Recession Risk
David Malpass | 2012-09-17

With the market-favorable Fed announcement and German court ruling, we’re at the end of the August-September spate of market-favorable news. It included the ECB’s bond buying plan, ECB collateral relaxation to fund Greece during the August holiday, the Fed’s ramp-up of QE3 and Germany’s formal backing for Draghi and now for the ESM.

New Info Explaining The Government War on Business
e21 Team | 2012-07-26

The staff on the Republican side of the Joint Economic Committee have been busy, as they’ve produced some great new material. First, an infographic showing the myriad ways Washington uses red tape to micromanage and control small businesses.

Framing the Decision on Higher Tax Rates
e21 Staff Editorial | 2012-07-25

To believe that higher tax rates are economically neutral, one would have to believe that (1) there is no impact on taxable income or hours worked; and (2) the government is better able to spend that incremental income than the household. If either (1) or (2) do not hold, it does not make sense to raise taxes while the economy is depressed. In a depressed economy, it makes little sense to enact damaging tax increases that would, at best, reduce the annual deficit by 2%. If Congress and the President wish to raise tax rates for social policy reasons, that is certainly their prerogative. But no one should be under any illusions about the likely economic impact of such action.

The President's Curious Misunderstanding of Market Economies
e21 Staff Editorial | 2012-07-19

One does not need to ascribe pejorative terms to President Obama’s worldview to recognize that some of his policies are animated by a misunderstanding of economic development. Large and non-diversifiable risk is the most salient feature of entrepreneurship, yet the President seems to ignore it completely. Taking entrepreneurial activity for granted by assuming it is invariant to tax rates is the easiest way to slow creativity, innovation, and growth.

Getting Internet Sales Tax Right
Josh Barro | 2012-05-31

While Amazon has somewhat softened its stance against state-level efforts to collect sales tax on internet sales, the fight over how internet sales will be taxed is far from resolved. Amazon and other online retailers have some valid complaints about states’ efforts to make them remit tax, particularly that sales tax compliance is unduly burdensome. But the status quo, where taxes due on a large fraction of online sales go unremitted, is undesirable from either a conservative or liberal perspective.


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