All taxes create a drag on the economy, slow growth and cost jobs. In light of this heavy toll Congress should construct a tax code that creates the least amount of economic drag possible. The current tax code falls well short of this standard. It imposes an enormous burden on the economy and badly needs fundamental reform. A better tax system would apply lower rates to a simply defined base that is not eroded by an overabundance of exemptions, credits, and deductions.
Issues 2012 provides candidates for elected office the ability to quickly identify the key issues of the day and present clear policy recommendations, supported by facts, for addressing them. Read More.
The Heritage Foundation offers a detailed plan to redesign entitlement programs, guarantee assistance to those who need it, and save the American dream for future generations. Read More.
The death tax expired January 1, 2010 but will come back to life in 2011. This harmful tax is a drag on America's family-owned businesses, destroys jobs, and lowers wages while raising little revenue. Read More.
President Obama and Congress need to focus on policies in 2012 that will unleash the economic growth necessary to get the economy back on track, create jobs, and lower the unemployment rate. As more government spending has failed to create that growth, the President and Congress… Read more
Abstract: America needs jobs. A government committed to free enterprise, limited government, and individual freedom, and not to more borrowing and spending, can properly help. To help unleash the private sector to invest and create jobs, Congress should promptly take five specific actions: enact… Read more
Fundamental Tax Reform Is Needed Now A Drain on the Economy: High marginal… Read more
Last week, President Obama said he would soon propose a set of policies that would eliminate tax breaks for businesses that move jobs overseas and reward businesses that bring jobs to the U.S. as part of his new “insourcing” agenda. If the President proposes more of… Read more
What Is Official Time? Official time is the practice of federal employees doing work for government unions while they are on the clock for their government jobs. … Read more
Curtis Dubay discusses the payroll tax debate. … Read more
Abstract: The current tax system discourages saving. It discourages investment. It discourages entrepreneurship. It causes decision makers to misallocate the nation’s resources, limiting productivity gains, wage gains, and the nation’s overall level of international competitiveness. And, it is far, far too complicated. The New Flat Tax is the remedy.… Read more
From The Heritage Foundation, I'm Ernest Istook. … Read more
As the “super committee,” created by the contentious Budget Control Act (BCA), grapples with its mandate to find $1.5 trillion in deficit reduction savings, many are urging it to “go big.” And no wonder. Since July 31, the eve of the BCA’s enactment, the federal government has continued to hemorrhage… Read more
Targeted tax credits have become a popular and prevalent method for the government to award preferential treatment to certain energy industries. Over the past decade, the number of tax preferences for the production and consumption of government-picked energy technologies has expanded considerably.[1] This favored tax treatment acts as… Read more
I. Introduction Who pays the income tax, the payroll tax, the estate and gift taxes? Who bears the burden of the gasoline and tobacco taxes? If Congress were to raise this tax rate, or lower that tax deduction, who would… Read more
Until recently, estate taxes (also known as death taxes) were the almost exclusive headache of the super rich, their tax attorneys, and their estate planners. But a strong economy, an ever-widening distribution of wealth--both good things--coupled with tax policy that has failed to keep up with economic growth have extended the reach of… Read more
There is widespread consensus that the current tax system is a complicated failure that hinders the nation's growth while allowing the politically well-connected to manipulate the system to get special breaks that are not available to average workers and businesses. This is stimulating a great deal of interest in… Read more
WASHINGTON, Sept. 1, 2000 - What price love? Married couples can now figure it out to the dollar by visiting The Heritage Foundation's new "Marriage Tax Relief Calculator," an online tool that allows two-income families to see how much they could save if the "marriage penalty" didn't force them to pay more in taxes… Read more
Abstract: President Obama’s tax plan will, famously, end the 2001 and 2003 tax relief for Americans earning $250,000 a year or more. But, far from raising taxes only on the “rich,” the widespread effects of the Obama plan will hurt Americans at every income… Read more
Abstract: Since 1996, Congress after Congress has voted to lighten the tax burden on Americans. The current Congress will decide this fall whether to continue this policy or to significantly raise personal income taxes. President Obama has advanced a plan that reverses the long-standing… Read more
Abstract: The Obama Administration and its allies in Congress want to eliminate the deductibility of punitive damages as a business expense. Such a move would increase the damages paid by businesses in lawsuits¾a brilliant scheme sure to boost the stagnant economy. In fact, increased… Read more
Conventional wisdom becomes dangerous when it contradicts analysis and evidence. On the federal budget, for example, we’re told that the rich are evading their fair share of the tax burden while the poor are seeing their spending slashed. These assumptions have consequences. The president’s deficit commission —… Read more
See also: The Truth About Tax Rates and The Politics of Class Warfare by Daniel J. Mitchell, Ph.D. After President George W. Bush sent Congress an outline of his tax reform plan on February 8, some critics immediately began to attack… Read more
Abstract: There is little dispute that the current federal income tax is in real need of an overhaul. The heart of tax reform is to achieve a stronger economy through the adoption of a more economically neutral tax system featuring much lower marginal… Read more
Like the villain in a horror movie, the many-lived millionaire tax is once again back from the dead. Senate Majority Leader Harry Reid (D–NV) dusted off this economically frightening tax hike that has repeatedly failed to pass Congress to pay for President Obama’s jobs plan (American Jobs Act of 2011,… Read more
Abstract: U.S. companies that own foreign subsidiaries pay taxes abroad—and they often pay taxes again when the companies bring the earnings home—known as repatriation. This double taxation naturally hurts competitiveness at home and abroad, and encourages U.S. companies to leave these earnings abroad. A… Read more
Two well-connected government unions in California are teaming with Gov. Jerry Brown to support a multibillion-dollar...… Read more
On December 31, a set of approximately 50 tax-reducing provisions commonly referred to as the “tax extenders” expired....… Read more
Today, Senators Jim DeMint (R–SC) and Mike Lee (R–UT) introduced legislation that would move the United States a giant...… Read more
President Obama used his State of the Union address Tuesday to outline his idea of fairness. To put it simply, that...… Read more
How many times should your money be taxed? One time? Two times? Three times? Four? Sounds like a ridiculous...… Read more
In this week's Heritage in Focus, Heritage director of communications, Rory Cooper, discusses the president's State of...… Read more
Much has been made of Mitt Romney’s asserted 15 percent or so tax rate. There is both a material error and an irony to...… Read more
The remarks of Alan Krueger, chairman of Obama’s Council of Economic Advisers, asserting that taxing the rich can spur...… Read more
The political battle over extending the payroll tax holiday is understandably confusing for many Americans, so it is...… Read more
On the front page of the White House's website, a clock slowly ticks away, second by second, counting down to the day,...… Read more
Director, Center for Data Analysis
Senior Policy Analyst, Tax Policy
Norman B. Ture Senior Fellow in the Economics of Fiscal Policy
Assistant Director, Center for Data Analysis and Research Fellow