PUBLICATIONS BY Rea S. Hederman, Jr.
Research
Commentary
Media Appearances
2009 Research
November 06, 2009
Heritage Employment Report: October Has Few Treats, Lots of Tricks
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #2685)
As job losses mount, the monthly jobs report continues to demonstrate both the failure of the stimulus bill and the hollowness of the Administration's claim that it created or saved 640,000 jobs.
November 06, 2009
Pelosi Health Care Plan: Who Pays the Surtax?
By Rea S. Hederman, Jr., and Guinevere Nell
(WebMemo #2687)
The Pelosi health care plan relies on a large surtax that would gradually encompass all American taxpayers, much like the dreaded Alternative Minimum Tax does.
November 02, 2009
New Health Care House Bill Has Plenty of New Taxes
By Rea S. Hederman, Jr.
(WebMemo #2675)
The new House health care bill still contains painful tax increases that will affect more and more Americans every year.
October 02, 2009
Heritage Employment Report: September's Step Back
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #2639)
The continued weakness in the labor market continues to illustrate how flawed the stimulus package was.
September 25, 2009
Baucus Plan Increases Out-of-Pocket Costs for Many Families
By Rea S. Hederman, Jr., and Paul L. Winfree
(WebMemo #2628)
The mandates in Senate Finance Chairman Max Baucus's health care reform bill will hurt individuals, families, and businesses.
September 04, 2009
Heritage Employment Report: August Jobs Report Shows Too Soon to Announce "Mission Accomplished"
By Rea S. Hederman Jr. and James Sherk
(WebMemo #2604)
The predictions that were used to promote the stimulus bill have proven false as the August jobs report shows unemployment continues to climb.
August 07, 2009
Heritage Employment Report: July Jobs Report a Jolt
By Rea S. Hederman, Jr.
(WebMemo #2584)
Policymakers should end their reliance on failed Keynesian economics and concentrate on pro-growth policies such as extending the lower tax rates for dividends and capital gains.
August 06, 2009
Obama's Plan to "Create or Save" Jobs: A Promise Unfulfilled
By James Sherk and Rea S. Hederman, Jr.
(Backgrounder #2305)
President Obama has repeatedly claimed that his economic stimulus bill will "create or save" 3.5 million new jobs by 2011, including 600,000 jobs by the end of this summer. It is impossible to hold the President accountable to these promises because there is no way of measuring "jobs saved." The job-creation rate among private-sector employers will have to increase before employment begins rising again.
July 23, 2009
House Bill to Hit Small Businesses with Surtax
By Rea S. Hederman, Jr.
(WebMemo #2556)
The large tax increases proposed by House Ways and Means Chairman Charlie Rangel (D-NY) would harm over a million small businesses, making them less likely to expand and hire new workers.
July 09, 2009
A Third Stimulus? Don't Repeat the Same Failures
By J. D. Foster, Ph.D., and Rea S. Hederman, Jr.
(WebMemo #2533)
Congress and the Administration should jettison their ideology to pursue policies that will help the economy in the short and long term.
July 02, 2009
Heritage Employment Report: June Job Market Continues Downward Slide
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #2521)
While the June jobs report is not as bad as some of the previous job reports, the employment situation remains grim.
July 01, 2009
How Reforms to the Tax Treatment of Health Insurance Benefit the Middle Class
By Greg D’Angelo, Rea S. Hederman, Jr., and Paul L. Winfree
(WebMemo #2518)
Health reform proposals recently introduced in Congress--such as the Patients' Choice Act of 2009--seek to replace the current income tax exclusion with a fairer, flatter form of tax relief for all Americans regardless of job status.
June 05, 2009
Heritage Jobs Report: May Report Shows Small Silver Lining
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #2467)
The May employment report revealed a glimmer of sunlight in the recession's stormy clouds.
March 06, 2009
Heritage Jobs Report: February Employment Losses Would Be Worse with Card Check
By Rea S. Hederman Jr. and James Sherk
(WebMemo #2330)
February continued the miserable string of poor employment reports by the Bureau of Labor Statistics. Consequently, Congress and the President should take action to strengthen the labor market instead of weakening it.
February 24, 2009
The Elements of a Responsible Budget Proposal
By Brian M. Riedl, Mackenzie M. Eaglen, Curtis S. Dubay, J. D. Foster, Ph.D., William W. Beach, and Rea S. Hederman, Jr.
(WebMemo #2309)
The President must ensure that his budget proposal protects America’s security abroad and economic security at home.
February 06, 2009
Stimulus Won’t Help Grim Jobs Report
By Rea S. Hederman, Jr.
(WebMemo #2278)
The January jobs report reveals that last month employment opportunities declined by 598,000 and the unemployment rate increased to 7.6 percent.
January 26, 2009
Building a Better Stimulus Bill
By Rea S. Hederman, Jr., and Ryan Tang
(WebMemo #2247)
The tax cuts that are currently part of the stimulus bills and supported by President Obama rely on increased consumer spending instead of boosting investment and saving. Instead, policymakers should look at enacting tax cuts that will provide the largest boost to the economy.
January 12, 2009
U.S. Labor and Employment Report: Jobs Report for December Underscores Need for Pro-Growth Economic Policies
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #2205)
The jobs reports of the previous two months have been the worse in decades. Congress should enact policies aimed at bolstering employment opportunities by reducing the burden on businesses.
2008 Research
December 05, 2008
Heritage Employment Report: November's Weak Thanksgiving Jobs Numbers
By Rea S. Hederman, Jr.
(WebMemo #2157)
The Bureau of Labor Statistics announced that in November, 533,000 jobs were lost and the unemployment rate increased from 6.5 percent to 6.7 percent. Despite this economic turmoil, the government should be careful to not make things worse.
November 07, 2008
Heritage Employment Report: October Report Shows Fall in Jobs
By Rea S. Hederman, Jr.
(WebMemo #2125)
The October jobs report shows the American economy is in bad shape. Consequently, the federal government should take steps to improve the economy with policies that lay the foundation for short-term and long-term economic growth while adhering to the principle of doing no harm.
October 15, 2008
The Obama and McCain Tax Plans: How Do They Compare?
By William Beach, Karen Campbell, Ph.D., Rea S. Hederman, Jr., and Guinevere Nell
(Center for Data Analysis Report #08-09)
The results in this paper are based on the specific tax policy proposals of Senator Barack Obama and Senator John McCain. The economy improves under each plan as compared to the CBO baseline that assumes that all of the Bush tax cuts disappear. While both candidates plan to reduce taxes compared to this scenario and each achieves his stated goal, their approaches are quite different.
October 03, 2008
Heritage Employment Report: September's Job Report is Grim
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #2096)
The September jobs report is not surprising in light of the overall downturn of the economy. The economy is slipping off the edge and could be headed into another recession.
September 26, 2008
House Tax Extenders Bill Is Bad for Business and the Economy
By Rea S. Hederman, Jr., and Nicolas Loris
(WebMemo #2084)
The tax extenders legislation that passed the House 257–166 on September 26 has significant problems. The tax cuts and increased spending in the bill are being offset by tax increases on businesses. There are also hidden costs in the bill that will likely increase deficits in future years. Elements of the bill that raise taxes, increase the deficit, or complicate the tax code should be eliminated.
September 18, 2008
A Second Economic Stimulus Bill Will Fail—Just Like the First
By Rea S. Hederman, Jr., Stephen Keen, and Brian M. Riedl
(Backgrounder #2186)
The new economic stimulus proposals rely on increased government spending, which is a proven failure. Highway and infrastructure projects take too long and do not create new jobs; they transfer jobs from one sector of the economy to another. Congress should learn from its previous mistakes and should not enact a stimulus bill that increases the deficit and will not boost the economy.
August 27, 2008
Census Bureau Shows Income Gains in 2007, but Poverty Remains Flat
By Rea S. Hederman, Jr.
(WebMemo #2035)
On August 26, the Census Bureau released the report "Income, Poverty and Health Insurance Coverage in the United States: 2007." While this report contains good news about the economy, the news would be even better if the Census Bureau included in-kind benefits as a way to reveal the true state of poverty.
August 01, 2008
July Job Losses Lighter than Expected
By Rea S. Hederman Jr and James Sherk
(WebMemo #2008)
The July jobs report is not one that would be expected if the economy were in a recession. Job losses are relatively light and contained in a few sectors of the economy or to teenagers, who were hit hard by an increase in the minimum wage.
July 03, 2008
No Celebration for June Jobs Report
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1980)
The American economy continues to stall, making the atmosphere even less conducive for tax increases.
June 26, 2008
European Levels of Taxation: Barack Obama's Tax Plan
By Rea S. Hederman and Patrick Tyrrell
(WebMemo #1973)
Barack Obama's tax plan would give the United States one of the highest tax rates in the industrialized world.
June 06, 2008
May Employment Report Reveals that School Is Out Early
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1948)
Today, the Bureau of Labor Statistics released the May employment report, which showed that the labor market has continued to weaken.
May 03, 2008
April Jobs Report Provides a Glimmer of Sunlight
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1914)
The American economy continued to shed jobs in April due to the housing market crash, but according to the Bureau of Labor Statistics’ payroll survey, some sectors of the economy, such as the service sector, increased employment.
April 15, 2008
Economic Effects of Increasing the Tax Rates on Capital Gains and Dividends
By William Beach, Rea S. Hederman, Jr., and Guinevere Nell
(WebMemo #1891)
On December 31, 2010, the low tax rates on capital gains and dividends enacted in 2003 will increase to the higher level that applied prior to that year. Many economists agree that the expiration of these tax cuts will discourage investment and slow economic growth. The United States already has one of the world’s highest capital gains tax rates.
April 04, 2008
March Jobs Report Confirms a Poor First Quarter for the American Economy in 2008
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1885)
The March jobs report shows a weakening economy. However, by historical standards the current job market remains strong. An unemployment rate of 5.1 percent is still lower than the average unemployment rate for the 1970’s, 1980’s and 1990’s. The unemployment rate for previous recessions peaked at much higher level, even reaching double digits for severe economic downturns.
March 07, 2008
Jobs Picture Darkens
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1839)
The federal government should ease the burdens it imposes on businesses and entrepreneurs.
February 01, 2008
The January Employment Report: Private Employment Increased
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1792)
An aggressive stimulus package containing rebates and new spending would be an excessive response to the current economic situation.
January 24, 2008
The House Stimulus Package: The Good and the Bad
By Rea S. Hederman, Jr.
(WebMemo #1778)
Certain elements would boost the economy, but other provisions should be omitted.
January 07, 2008
The Economy's Year-End Fizz
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1766)
Policymakers should be careful not to overreact to the December jobs report.
2007 Research
December 07, 2007
Employment Fattens Up During November
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1726)
The Bureau of Labor Statistics gives a bit of holiday cheer and stems worries that the economy is rapidly heading for a recession.
November 02, 2007
Post-Halloween Jobs Report Is a Treat
By James Sherk and Rea S. Hederman, Jr.
(WebMemo #1689)
The economy continues to grow and provide jobs and higher wages for American workers.
October 05, 2007
Leaves Fall, But Not Jobs
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1657)
The latest data show that fears of recession are misplaced, but Congress must still take care to avoid upsetting the economy.
August 29, 2007
Census Report Adds New Twist to Income Inequality Data
By Rea S. Hederman, Jr.
(WebMemo #1592)
With the help of a new measure for income inequality, a new report refutes the notion that "the rich are getting richer and the poor are getting poorer." However, the U.S. Census Bureau can make further changes to improve the accuracy of its data.
July 09, 2007
Expanding SCHIP into AMT Territory: SCHIP Plan Would Extend Welfare to Wealthy Families
By Rea S. Hederman, Jr.
(WebMemo #1546)
A proposed expansion of the children's health care program would provide subsidies to families so wealthy that they pay the AMT.
July 06, 2007
Fireworks for the June Jobs Report
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1539)
In light of strong job creation and low unemployment, Congress should make the Bush tax cuts permanent and refrain from meddling in the labor market,
May 04, 2007
April Jobs Report Doesn't Rain on Sunny Economy
By James Sherk and Rea S. Hederman, Jr.
(WebMemo #1444)
Congress should ensure that job growth continues by rejecting policies that would put workers and employers at a disadvantage in the free market.
April 10, 2007
Senate Budget Resolution Fails to Address Tax Gap Problems
By Rea S. Hederman, Jr.
(WebMemo #1419)
If Congress wants to close the tax gap, it should focus on tax simplification.
March 09, 2007
February Job Growth Was Not Chilly
By Rea S. Hederman, Jr.
(WebMemo #1391)
Job numbers reflect an economy that continues to grow and expand, although at a slightly cooler pace than in 2006.
February 01, 2007
The Triple Whammy of Taxes: How the AMT, Repealing the Bush Tax Cuts, and the Social Security Wage Cap Would Raise Taxes on Millions of Americans
By Rea S. Hederman, Jr., Alison Acosta Fraser, William W. Beach
(WebMemo #1334)
Three tax increases that would harm the economy and subject millions of taxpayers to significantly higher marginal tax rates.
January 23, 2007
Raising the Wage Cap No Painless Solution to Social Security’s Fiscal Woes
By David C. John and Rea S. Hederman, Jr.
(WebMemo #1319)
Raising payroll taxes is the wrong solution to Social Security’s long term financing problem, and it is not the way to achieve retirement security for Americans.
January 23, 2007
Who Earns the Minimum Wage? Suburban Teenagers, Not Single Parents
By James Sherk and Rea S. Hederman, Jr.
(WebMemo #1320)
A minimum wage hike is a raise for suburban teenagers, not the working poor.
January 05, 2007
A Strong Year for Jobs Offers Lessons for Congress
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1301)
The new Congress should enact policies to continue the economic expansion. It should make permanent the pro-growth tax cuts of 2003 but leave the minimum wage where it is.
2006 Research
December 08, 2006
New Job Report Shows Wage Gains Are on Track
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1282)
Wages are up, and unemployment remains low. Good policy will help sustain this strong economy.
November 03, 2006
A Strong Pre-Election Jobs Report, Thanks to Good Economic Policy
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1245)
With unemployment near record lows, another strong jobs report refutes the economy's critics.
September 08, 2006
Lies, Damn Lies, and Income Statistics: Understanding the Detroit Free Press’s Income Map
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1208)
A much-cited map misleads on median household incomes.
August 04, 2006
July Jobs Report Isn't as Hot as the Weather
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1189)
A weak jobs report for a strong economy
August 03, 2006
Who Earns the Minimum Wage--Single Parents or Suburban Teenagers?
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1186)
Raising the minimum wage will not help low-income workers or single parents.
August 03, 2006
Low-Income Workers May Be Worse Off if Congress Increases the Minimum Wage
By Rea S. Hederman, Jr., and Sam Hyman
(WebMemo #1187)
Raising the minimum wage may cause some low-income workers to receive fewer government benefits.
July 07, 2006
A Strong Jobs Report Points the Way to Better Policy
By Rea S. Hederman, Jr., and James Sherk
(WebMemo #1146)
Surveys show that many Americans feel anxious about their economic prospects. Often they hear stories about weak job growth or stagnant earnings that seem to confirm their fears. And many think that proposals to raise the minimum wage would help low income workers get ahead in these difficult times. But the evidence shows that that raising the minimum wage would not help.
May 30, 2006
Past Trends and Future Troubles in Federal Spending: A Look at the Federal Budget Chart Book
By Rea S. Hederman, Jr., Alison Acosta Fraser, and Michelle Muccio
(WebMemo #1098)
Rapid economic fluctuations have been the norm for the United States over the past 40 years. The U.S. economy has sustained both unprecedented expansionary highs and "mini-depression" lows. Inflation, interest, and unemployment rates have hit soaring highs and remarkable lows. The one constant throughout this period has been the relentless growth of the federal government.
May 05, 2006
Job Numbers Show a Strong Economic Recovery
By Rea S. Hederman, Jr., James Sherk, and Samuel Hyman
(WebMemo #1063)
The current economic recovery is benefiting average Americans.
April 07, 2006
March Employment Growth Shows that Congress Should Finish Its April Tax Bill
By Rea S. Hederman Jr. and James Sherk
(WebMemo #1032)
Americans should take a moment during this busy week of filing their tax returns to reflect on how much the 2003 tax cuts reduced their taxes and sparked the economy. Not only do they see the benefits of the Bush tax cuts in their tax returns, but millions owe their current jobs in part to the pro-growth tax policy changes of 2003.
February 16, 2006
Make the Dividend and Capital Gains Tax Rates Permanent to Keep the Economy Growing
By Rea S. Hederman, Jr., and William W. Beach
(Backgrounder #1914)
Thanks in part to the reduced cost of capital, business investment has grown in every quarter since the 2003 tax cut, but the average taxation of dividends will become 28 percent if JGTRRA provisions are allowed to expire. Extending the 2003 tax rates or making them permanent would reinforce a central element of good economic policy: predictable and stable tax law.
January 05, 2006
Make the Bush Tax Cuts Permanent
By William W. Beach and Rea S. Hederman, Jr.
(WebMemo #956)
If the tax cuts of 2001 and 2003 are allowed to expire, millions of working families will see their economic prospects dim.
2005 Research
December 02, 2005
The November Jobs Report: An Early Christmas Present
By Rea S. Hederman, Jr., and William W. Beach
(WebMemo #929)
Strong jobs numbers show the importance of extending expiring provisions of the 2003 tax cuts.
November 30, 2005
Does the World's Mightiest Economy Have an Achilles Heel?
By Tim Kane, Ph.D., and Rea S. Hederman, Jr.
(WebMemo #928)
The U.S. economy is the biggest in the world, and it just keeps growing bigger. Recent data from the Commerce Department confirm that economic growth is robust, faster than economists had expected. In annualized terms, the economy grew 4.3 percent larger during the third quarter of 2005, which also happened to be when three massive hurricanes ripped up the Gulf Coast. Some diehard pessimists remain skeptical—a sign of partisan times perhaps—but we share one concern about an Achilles heel on the American colossus...
September 19, 2005
Repealing Tax Cuts to Pay For Katrina Recovery Would Cost the Gulf Coast, and the Nation, Jobs
By Rea S. Hederman, Jr., Tim Kane, Ph.D., and Scott Moody
(WebMemo #849)
Congress should prioritize and cut spending, instead.
August 30, 2005
New Census Bureau Report Underscores the Need for More Pro-Growth Policies
By Kirk A. Johnson, Ph.D., and Rea S. Hederman, Jr.
(WebMemo #825)
Poverty was basically unchanged in 2004. We need more economic growth to make progress.
July 29, 2005
GDP Growth Continues to Impress
By Tim Kane, Ph.D., and Rea S. Hederman, Jr.
(WebMemo #812)
Growth is steady and not at all flashy--and that may be the best kind.
July 28, 2005
The House Pension Reform Bill: A Good, But Not Perfect, Start
By David C. John and Rea S. Hederman, Jr.
(WebMemo #867)
While the bill would give a boost to pensions and PBGC, it still leaves several loopholes wide open.
July 13, 2005
The Tax Cuts Are Working, Yet Spending Challenges Remain
By Brian Riedl and Rea S. Hederman, Jr.
(WebMemo #794)
Deficits are trending down, for now, but spending must still be cut.
June 07, 2005
Are Pensions the Next Fiscal Crisis?
By David C. John, Tim Kane, Ph.D., and Rea S. Hederman, Jr.
(WebMemo #756)
A federal pension bailout could cost $100 billion if Congress doesn't act soon.
May 17, 2005
Courageous Folly: The Democrats' First Plan To Fix Social Security
By Rea S. Hederman, Jr.
(WebMemo #747)
Rep. Wexler deserves credit for stepping forward with a plan...even a misguided one.
May 02, 2005
How the President's Plan Benefits Younger Workers
By Rea S. Hederman, Jr.
(WebMemo #734)
Even with slower growth of benefits, younger workers win out.
April 22, 2005
Keep the Social Security Wage Cap: Nearly a Million Jobs Hang in the Balance
By Rea S. Hederman, Jr., Tracy L. Foertsch, Ph.D., and Kirk A. Johnson, Ph.D.
(Center for Data Analysis Report #05-04)
Eliminating the cap on taxable earnings would merely delay Social Security's insolvency by seven years. Even after implementing this tax increase, the OASI program in 2041 would receive only enough revenue to pay 74 cents on every dollar in promised benefits; Congress would need to raise payroll tax rates again, borrow more money, or cut promised benefits.
April 19, 2005
Reversing the Bush Tax Cuts Would Not Fix Social Security
By Rea S. Hederman, Jr., and Andrew Grossman
(Backgrounder #1844)
President Bush's 2001 and 2003 tax cuts stimulated investment and expanded employment, adding some strength to the Social Security system in the process. Extending these tax cuts permanently would help to lock in these gains and spur further economic expansion. In contrast, a straightforward repeal of the President's tax cuts would harm both the economy and Social Security.
April 18, 2005
The Bush Plan To Reform Social Security: Case Studies from the Heritage PRA Calculator
By Rea S. Hederman, Jr.
(WebMemo #726)
Three examples of how the Bush plan would affect regular people.
March 07, 2005
AARP's Social Security Plan Would Raise Taxes for AARP Members Without Fixing Social Security
By Rea Hederman, Jr., and Tracy Foertsch
(WebMemo #678)
AARP's Social Security plan would raise taxes on its members and threaten their jobs.
January 13, 2005
The Unacceptable Costs of Raising Payroll Taxes to "Save" Social Security
By Rea S. Hederman, Jr., William W. Beach, and Andrew Grossman
(WebMemo #639)
Small fixes turn out not to be so small.
January 07, 2005
Here's to a Good Year: A Look at Employment Gains in 2004
By Alison Acosta Fraser and Rea S. Hederman, Jr.
(WebMemo #634)
It was a very good year.
2004 Research
December 03, 2004
Jobs Gap Defies Expectations
By Alison Acosta Fraser, Tim Kane, and Rea Hederman
(WebMemo #616)
Today's job report issued by the Bureau of Labor Statistics is still more evidence of an expanding economy, with job growth exceeding 100,000 for the fourth straight month.
November 05, 2004
The Post-Election Employment Picture
By Tim Kane, Ph.D., and Rea Hederman
(WebMemo #603)
The employment numbers released today confirm again that labor markets are healthy. The labor force is 147.9 million strong, a record high.
October 29, 2004
Past. Present! Future? Economic Growth in America
By Tim Kane, Ph.D., and Rea Hederman
(WebMemo #601)
This paper looks forward at how the two parties' radically different plans may affect growth and prosperity.
October 21, 2004
Scorecard on the Economy: A Guide for Policymakers
By Tim Kane, Ph.D., Andrew Grossman, Rea S. Hederman, Jr., and Kirk A. Johnson, Ph.D.
(Center for Data Analysis Report #04-10)
More than 1.5 million payroll jobs, and nearly 2 million jobs on the household survey, added over the past year; high output, manufacturing outlook, business confidence, and productivity; markedly improved long-term unemployment and manufacturing employment outlooks; and a poverty rate that is low by historical standards: These are the facts that frame the debate on the economy.
October 08, 2004
Jobs: The Ultimate Pocketbook Issue
By Tim Kane, Ph.D., and Rea Hederman
(WebMemo #584)
A pleasant last look at employment before the election.
October 07, 2004
Framing the Economic Debate
By Tim Kane, Ph.D., Rea S. Hederman, and Kirk Johnson, Ph.D.
(WebMemo #582)
A statistic-rich summary of the state of the economy.
September 23, 2004
One Cheer for the Tax Extender Package
By Rea S. Hederman, Jr.
(WebMemo #572)
Congress will soon vote on extending several tax cuts. A good move, but there's more yet to do.
September 20, 2004
The Candidates' Tax Plans: Comparing the Economic and Fiscal Effects of the Bush and Kerry Tax Proposals
By William W. Beach, Ralph A. Rector, Ph.D., Rea S. Hederman, Jr., Alfredo B. Goyburu, and Tim Kane, Ph.D.
(Center for Data Analysis Report #04-09)
Senator John Kerry's tax plan slows economic activity until 2011, when it generally adopts President George Bush's approach of permanent tax cuts. Even so, the Bush plan consistently outperforms the Kerry plan. President Bush relies on supply-side tax changes while Senator Kerry focuses much of his attention on demand-side policy with targeted tax policy changes that yield the unintended consequence of producing a tax cut for high-income taxpayers after 2011.
September 03, 2004
A Labor Day Report Card
By Tim Kane, Rea Hederman, and Alison Acosta Fraser
(WebMemo #560)
The jobs market looks great today. Look back over the last year, and the picture is even better.
September 03, 2004
Bush's Tax Proposal: A Principled Step in the Right Direction
By Rea S. Hederman and Daniel J. Mitchell
(WebMemo #562)
President George W. Bush called for tax reform and a "simpler, fairer, pro-growth system." These goals should be the foundation for any reform of the tax code.
August 24, 2004
Two Americas: One Rich, One Poor? Understanding Income Inequality in the United States
By Robert Rector and Rea Hederman, Jr.
(Backgrounder #1791)
The top fifth of U.S. households perform a third of all labor, contain the best educated and most productive workers, provide a disproportionate share of the investment needed to create jobs and spur economic growth, and pay 82.5 percent of federal income taxes and two-thirds of federal taxes overall. Raising their taxes even higher would reduce economic growth, harming all Americans.
August 24, 2004
Executive Summary: Two Americas: One Rich, One Poor? Understanding Income Inequality in the United States
By Robert Rector and Rea Hederman, Jr.
(Executive Summary #1791)
Executive Summary: he top fifth of U.S. households perform a third of all labor, contain the best educated and most productive workers, provide a disproportionate share of the investment needed to create jobs and spur economic growth, and pay 82.5 percent of federal income taxes and two-thirds of federal taxes overall. Raising their taxes even higher would reduce economic growth, harming all Americans.
August 06, 2004
A Problem with Payrolls?
By Tim Kane, Ph.D., and Rea Hederman
(WebMemo #550)
Fundamentally, the employment situation in America is solid, but payroll job growth is out of line with a host of positive indicators.
July 21, 2004
The 2003 Tax Cuts and the Economy: A One-Year Assessment
By Bill Beach, Rea Hederman, Tim Kane
(WebMemo #543)
All across the economic spectrum, JGTRRA left its tracks.
June 04, 2004
Jobs Momentum In May
By Bill Beach, Tim Kane, and Rea Hederman
(WebMemo #515)
Employment in America continues to expand strongly and steadily.
May 24, 2004
Michigan Leads a National Jobs Boom
By Rea Hederman and Tim Kane, Ph.D.
(WebMemo #510)
This month's state data release confirms that the national expansion in jobs is widespread across all sectors and all regions.
May 07, 2004
April Jobs Report: It's All Good
By Tim Kane, Rea Hederman, and Alison Acosta Fraser
(WebMemo #499)
On its face, the April jobs report released today by the Labor Department looks good, but the details look even better.
April 29, 2004
First Quarter GDP: Above Average Again
By Rea S. Hederman, Jr., and William Beach
(WebMemo #493)
Today's numbers may presage employment growth, and they are just the latest evidence of the power of the President's tax cuts.
March 18, 2004
An Increase in the Gas Tax Would Hurt Consumers and Slow the Economy
By Rea S. Hederman and Alfredo Goyburu
(WebMemo #451)
Analysis shows that increasing the gas tax would depress economic activity and the incomes of millions of Americans.
March 05, 2004
Employment, Unemployment, and the Puzzle of Payroll Anemia
By Alison Acosta Fraser and Rea S. Hederman, Jr.
(WebMemo #440)
Is this really a "jobless recovery?" Or is a fundamental restructuring in several sectors of the economy changing the rules of game, for the overall benefit of most workers and consumers?
February 06, 2004
Increased Investment Pushes January Job Growth
By William W. Beach, Alison Acosta Fraser, Rea S. Hederman, Jr., and Tim Kane
(WebMemo #416)
The President's pro-growth economic plan – and his tax cuts, especially – contributed to last month's increase in employment.
February 03, 2004
Tax Cuts Boost Business Investment
By Rea S. Hederman, Jr.
(WebMemo #412)
Congress should make pro-growth tax cuts—and especially the provision for "bonus" depreciation, which expires at the end of 2004—permanent to ensure continued prosperity.
February 03, 2004
Jobs Picture Brightening: Unemployment Drops in 38 States
By Rea S. Hederman, Jr.
(WebMemo #412)
From January 2003 to January 2004, the unemployment rate dropped in four out of five states, and almost every region saw an increase in the civilian labor force.
January 09, 2004
Unemployment Report: Manufacturing Down, Service Up; Long Term Trends Still Positive
By William W. Beach, Alison Acosta Fraser and Rea S. Hederman Jr.
(WebMemo #388)
Today's employment report is not good. But there is still reason for Americans to be optimistic. It also reveals some longer-term, positive employment trends.
January 09, 2004
Tracking the Long-Term Unemployed and Discouraged Workers
By Rea S. Hederman Jr.
(WebMemo #389)
As the number of unemployed workers in the labor force continues to decline, the focus on discouraged workers and other individuals marginally attached to the labor force has increased.
2003 Research
December 05, 2003
Strong Economic Growth Continues
By Rea S. Hederman, Jr.
(WebMemo #379)
The November employment report -- continuing the string of good economic news -- shows increasingly strong economic growth with low inflation and remarkably high worker productivity. Overall, economic indicators have been very robust and paint an encouraging picture.
December 05, 2003
The Beat Goes On: Unemployment Drops
By William W. Beach, Alison Acosta Fraser and Rea S. Hederman Jr.
(WebMemo #380)
For the first time since March the unemployment rate is below 6 percent. Widespread evidence suggests this economic growth will continue throughout 2004 and probably 2005.
November 14, 2003
State-By-State Tax Increase from Medicare Drug Benefit
By Rea S. Hederman, Jr.
(WebMemo #367)
Taxpayers would see a $41 billion tax increase next year, if Congress passes the proposed Medicare prescription drug legislation and raises taxes to pay for this massive new program.
November 07, 2003
Tax Cuts Working: Over 1 Million New Jobs
By William W. Beach and Rea S. Hederman Jr.
(WebMemo #363)
The announcement by the Bureau of Labor Statistics that employment has grown by 126,000 in October and by nearly as much in September marks the third month of improvement in the employment survey. What's important about these latest figures is their signal that the economy is well along in its recovery, and it's a strong recovery, to boot.
October 17, 2003
The Economic Effect of Reversing Part of the Bush Tax Cuts
By Rea Hederman and Al Goyburu
(WebMemo #351)
Calls to reverse the 2001 and 2003 Bush tax cuts have been increasing in number. Congress should reject any new legislation that would delay or repeal the tax cuts, instead acting to make them permanent – ensuring the strongest possible economic and employment growth.
May 23, 2003
Economic Impact Analysis of the Jobs and Tax Relief Reconciliation Act of 2003
By William W. Beach, Alfredo Goyburu, and Rea S. Hederman
(WebMemo #281)
The Jobs and Growth Tax Relief Reconciliation Act of 2003 that the House and Senate passed on May 23 contains some strong pro-growth elements, specifically accelerating the 2001 marginal rate cuts, lowering the taxation of dividends and capital gains and allowing businesses to accelerate depreciation deductions on their investments.
May 19, 2003
How the House and Senate Can Produce the Most Pro-Growth Tax Bill
By Rea S. Hederman and Alfredo Goyburu
(WebMemo #277)
The House and Senate leadership currently has before it three options for cutting taxes and advancing economic growth: the tax legislation recently passed in the House (H.B. 2) and the Senate (S.B. 1054) and President George Bush's economic plan.
May 06, 2003
Lowering Dividends and Capital Gains to 15 Percent Creates Significant Economic Growth
By Alfredo Goyburu, Rea Hederman and Norbert Michel
(WebMemo #270)
Reducing the taxes on capital gains and dividends causes economic growth by reducing the cost of investment. CDA economists estimate that the 5/15 proposal could provide an immediate boost to the economy.
April 30, 2003
Creating the Most Growth: Picking the Right Tax Cuts
By Rea Hederman
(WebMemo #268)
While a tax bill at only $350 billion greatly reduces the potential for economic growth under the President's original plan, higher levels of economic growth can still be achieved if Congress enacts the best provisions of the President's plan.
April 01, 2003
Senate's Adoption of Breaux Amendment Means Fewer Jobs and Less Economic Growth
By Rea Hederman
(WebMemo #244)
The Heritage Foundation's Center for Data Analysis uses the DRI/WEFA U.S. macro econometric model to simulate the differences between the two proposals.
March 25, 2003
What the CBO Director Really Said
By Ralph Rector, Ph.D., and Rea Hederman
(WebMemo #237)
CBO analysis shows that the type of tax reductions found in the President's Economic Growth package work to offset the drag on the economy from increased spending.
January 29, 2003
Role of Parental Work
By Robert E. Rector and Rea S. Hederman, Jr.
(Center for Data Analysis Report #03-01)
The analysis presented in this paper indicates that child poverty is more often the result of low levels of parental work than of parents' low hourly wage rates.
2002 Research
September 24, 2002
bg1591es: Improving Efficiency and Reducing Costs
By Michael Scardaville and Rea S. Hederman, Jr.
(Backgrounder #1591es)
bg1591es: Improving Efficiency and Reducing Costs in the Department of Homeland Security
September 24, 2002
Improving Efficiency and Reducing Costs in the Department
By Michael Scardaville and Rea S. Hederman, Jr.
(Backgrounder #1591)
Congress must allow the Homeland Security department to consolidate redundant federal agencies transferred to it, while refraining from adding new programs that are unrelated to homeland security. S. 2452 fails to do either and will likely cost $7 billion more than the President's proposal over the next five years.
March 12, 2002
Evaluation of the National Energy Policy
By William W. Beach, Charli E. Coon, and Rea S. Hederman
(Center for Data Analysis Report #02-01)
Econometric and Policy Evaluation of the National Energy Policy
2001 Research
November 09, 2001
The Effects of Bush's and Daschle's Economic Stimulus Plans
By William W. Beach, D. Mark Wilson, Rea S. Hederman, and Ralph A. Rector
(Center for Data Analysis Report #01-09)
The two current economic stimulus plans reflect the two major views of government's role in economic planning. While both plans transfer income to low- and moderate-income taxpayers through rebates, and assist the unemployed, serious questions have been raised about whether government spending is the way to boost economic activity.
November 07, 2001
The Effects of Bush's & Daschle's Economic Stimulus Plans
By William W. Beach, D. Mark Wilson, Rea S. Hederman and Ralph A. Rector
(WebMemo #53)
The two current economic stimulus plans clearly reflect the two major views of government's role in economic planning. While both plans transfer income to low- and moderate-income taxpayers through rebates and both assist the unemployed, serious questions have been raised about whether increased government spending is the best tool for boosting economic activity.
November 05, 2001
CDA01-08: How Economic Stimulus Proposals Would Effect the Economy
By William W. Beach, D. Mark Wilson, Rea S. Hederman, and Ralph A. Rector
(Center for Data Analysis Report #01-08)
CDA01-08: How the Economic Stimulus Proposals of the Administration, the House, and the Senate Would Effect the Economy
May 15, 2001
Marriage Penalty and Child Tax Credit Relief in H.R. 6 (CDA)
By Rea S. Hederman, Jr.
(Center for Data Analysis Report #01-03)
Data from the 1990 Census shows that over 25 million married taxpayers would benefit from marriage penalty reform and about 40 million children would be eligible for the expanded child tax credit.
May 15, 2001
Marriage Penalty and Child Tax Credit Relief in H.R. 6
By Rea S. Hederman, Jr.
(Center for Data Analysis Report #01-03)
Who Benefits from Marriage Penalty and Child Tax Credit Relief in H.R. 6: Estimates by State and Congressional District
March 28, 2001
Congress Should Renew Its Efforts to End the Marriage Penalty
By Rea S. Hederman, Jr.
(Backgrounder #1424)
The tax code should treat all taxpayers fairly and equally. Couples should not be forced to pay more taxes simply because they change their marital status. Indeed, the correct way to end the marriage penalty would be to ensure that married couples are treated as two comparable single filers.
March 07, 2001
The Economic and Budgetary Effects of H.R. 3
By D. Mark Wilson, William W. Beach and Rea S. Hederman, Jr.
(Center for Data Analysis Report #01-02)
The Economic and Budgetary Effects of H.R. 3, The Economic Growth and Tax Relief Act of 2001
2000 Research
July 07, 2000
Comparing Four Major Marriage Penalty Proposals Before Congress
By Rea S. Hederman, Jr.
(Backgrounder #1382)
Comparing Four Major Marriage Penalty Proposals Before Congress
June 12, 2000
Who Can Benefit from A+ Accounts?
By Rea S. Hederman, Jr., and Nina Shokraii Rees
(Executive Memorandum #680)
Education accounts will help families who need it most
March 22, 2000
Who Benefits From Expanded Educational Savings Accounts
By Rea S. Hederman, Jr.
(Center for Data Analysis Report #00-04)
Who Benefits From Expanded Educational Savings Accounts: New Estimates by Congressional District
February 25, 2000
Time to Retire the Social Security Earnings Test
By David C. John and Rea S. Hederman, Jr.
(Backgrounder #1348)
Time to Retire the Social Security Earnings Test
February 08, 2000
Who Pays the Marriage Penalty?
By William W. Beach and Rea S. Hederman, Jr.
(Center for Data Analysis Report #00-02)
Not only does this feature of the tax system stand as a likely obstacle to marriage, it can actually discourage a spouse from entering the workforce.
1999 Research
September 29, 1999
Income Inequality
By Robert E. Rector and Rea S. Hederman, Jr.
(Center for Data Analysis Report #99-07)
Political debate on income in the United States often has been characterized as competition between two schools of economic thought.
September 13, 1999
How Tax Bill Would Affect Families, The Economy, and The Budget
By D. Mark Wilson, William W. Beach, Ralph A. Rector, Ph.D., and Rea S. Hederman, Jr.
(Center for Data Analysis Report #99-06)
The Taxpayer Refund and Relief Act of 1999 (H.R. 2488) promises to give Americans the largest tax reduction since 1981.
March 22, 1999
Children Who Qualify for a Child Tax Credit
By Rea S. Hederman, Jr.
(Center for Data Analysis Report #99-03)
The Taxpayer Relief Act of 1997 (P.L.105–34) contains a provision called the child tax credit.
March 04, 1999
The Effects of Reducing Federal Income Tax Rates by 10 Percent
By William W. Beach, D. Mark Wilson, Ralph A. Rector, Ph.D., Rea S. Hederman, Jr., and Aaron Schavey
(Center for Data Analysis Report #99-02)
The House and Senate Republican leadership recently announced their interest in using a portion of the current and expected consolidated budget surplus to cut individual income tax payments.
1998 Research
October 16, 1998
How Public Policy Reforms Would
By William W. Beach, Gareth G. Davis, Rea S. Hederman, Kirk Johnson, and Nina Shokraii Rees
(Backgrounder #1227)
How Public Policy Reforms Would Unleash Hispanic America's Economic Potential
October 16, 1998
BG1227es: How Public Policy Reform
By William W. Beach, Gareth G. Davis, Rea S. Hederman, Kirk Johnson, and Nina Shokraii Rees
(Executive Summary #1227)
BG1227es: How Public Policy Reform Would Unleash Hispanic America's Economic Potential
September 25, 1998
Who Would Benefit From Prepaid College Tuition Plans?
By Rea S. Hederman
(Center for Data Analysis Report #98-07)
Who Would Benefit From Prepaid College Tuition Plans?
March 17, 1998
17 Million Reasons To like A+ Accounts
By Nina H. Shokraii, Rea Hederman
(Executive Memorandum #514)
17 Million Reasons To like A+ Accounts
1997 Research
October 31, 1997
17 Million Reasons to Like A+ Accounts
By Nina H. Shokraii and Rea Hederman
(Executive Memorandum #502)
17 Million Reasons to Like A+ Accounts
June 11, 1997
BG1122: How Congress Can Deliver
By Scott A. Hodge, William W. Beach, John S. Barry, and Rea Hederman
(Backgrounder #1122)
BG1122: How Congress Can Deliver the Best Tax Cut Plan for the Money
2009 Commentary
October 09, 2009
Baucus Plan Is Harmful To Low-Income Workers
By Rea Hederman
Democratic Senator Max Baucus wanted to achieve bipartisan consensus -- and he succeeded. When the Senate Finance Committee chairman released his health care plan, policy analysts on the left and right agreed that his plan would harm low- and middle-income workers.
2008 Commentary
January 26, 2008
Risky Rate Cuts
By Rea Hederman
Faulkner's observation could easily apply to the Federal Reserve's recent move to stimulate the US economy and stem the precipitous downturn in many stock markets around the world.
2006 Commentary
September 08, 2006
Poor poverty yardsticks
By Rea S. Hederman
Every year at this time, the Census Bureau announces the official U.S. poverty rate. And every year, the same fruitless debate takes place.
August 31, 2006
A poor way to measure poverty
By Rea S. Hederman
Every year at this time, the Census Bureau announces the official poverty rate of the United States. And every year, the same fruitless debate takes place.
2005 Commentary
June 04, 2005
Generations X and Y must demand SS fix
By Rea S. Hederman
When I was forced to clean my room as a child, my mother would often admonish me: "No one wants to clean up your mess." Now, in my thirties, I'm faced with the prospect of cleaning up a far bigger mess.
February 23, 2005
MTV Poll Masks Youth Views on Social Security
By Rea S. Hederman
In the political Odd Coupling of 2005, MTV's Rock the Vote has joined forces with AARP.
2000 Commentary
August 30, 2000
Saying 'I Do'...To Higher Taxes
By Rea S. Hederman
Saying 'I Do'...To Higher Taxes
November 20, 2009
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