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.
Abstract: A host of annual tax-reducing provisions expired on December 31, 2011. As it does each year, before restoring these policies, Congress is sure to argue about how to “pay for” extending these tax reducers, for some of which have been the law as… Read more
President Obama recently sent Congress a series of policies as part of his “Startup America Initiative.”[1] The goal of the program is to help startups and small businesses to create jobs. The proposal includes four tax provisions that he also included in his budget. Some… 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
From The Heritage Foundation, I'm Ernest Istook. … 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
The story of how the Laffer Curve got its name begins with a 1978 article by Jude Wanniski in The Public Interest entitled, "Taxes, Revenues, and the 'Laffer Curve.'"1 As recounted by Wanniski (associate… Read more
This key research from 2005 has been updated in J.D. Foster's paper "The New Flat Tax—Easy as One, Two, Three" There is widespread consensus that the current tax system is a complicated failure that hinders the… Read more
Saving the American Dream is The Heritage Foundation’s plan to fix the debt, cut spending and, above all, restore prosperity. It balances the nation’s budget within a decade—and keeps it balanced. It reduces the debt and cuts government… 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
The Democratic majority in the U.S. House of Representatives must decide whether to write a budget extending, expiring, or repealing the Bush tax cuts. These tax cuts have provided a convenient scapegoat for the nation's budget and economic challenges. Despite a 42 percent spending increase in 2001, critics charge that… 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
There is a distinct pattern throughout American history: When tax rates are reduced, the economy's growth rate improves and living standards increase. Good tax policy has a number of interesting side effects. For instance, history tells us that tax revenues grow and "rich" taxpayers pay more tax when marginal tax… 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
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
President Obama is insistent that taxes must go up to close the deficit. He says it’s just common sense that taxes must...… Read more
President Barack Obama wants to see one million electric cars on the road by 2015, and he wants to spend more taxpayer...… Read more
This year's Index of Dependence on Government presented startling findings about the sharp increase of Americans who...… Read more
This is no time to be raising taxes on anyone. This is sufficiently obvious that even President Obama and House...… 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
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