Backgrounder posted April 7, 2015
A Tax Reform Primer for the 2016 Presidential Candidates
The 2016 presidential campaign is already well underway. As it progresses, candidates seeking the presidency will increasingly face questions about how they would address federal tax policy. Foremost among them will be how they will pursue tax reform should they become President. They will be asked whether they favor it, why, and to explain their own reform plans.
Backgrounder posted March 9, 2015
The Lee–Rubio Tax Plan’s Business Reforms Are Tremendously Pro-Growth
The primary purpose of tax reform is to enhance economic growth by expanding the economy’s potential. Based on initial analysis, the tax reform plan recently released by Senators Mike Lee (R–UT) and Marco Rubio (R–FL) amply succeeds at this core purpose, mostly by substantially improving the tax treatment of businesses. On the individual side, the plan takes steps in the…
Issue Brief posted March 5, 2015
CBO Should Update Its Methodology Before Dynamically Scoring Spending Bills
Congress could soon ask the Congressional Budget Office (CBO) to dynamically score a new transportation bill or other spending bills it will consider. Dynamic scoring has been a frequent topic of debate in recent months. It considers how major pieces of legislation affect the macro economy, whereas current static scoring does not.
The House passed a rule earlier this…
Issue Brief posted February 17, 2015
Changes to Repatriation Policy Best Left to Tax Reform
There is renewed discussion in Washington of changing the tax treatment of businesses’ foreign earnings (known as repatriation). There are several proposals to use such changes to fill the gap between spending and revenue in the Highway Trust Fund (HTF), and possibly pay for additional transportation spending.
Under current law, U.S. businesses pay tax on their worldwide…
Backgrounder posted October 20, 2014
How Tax Reform Would Help American Families
Tax reform is one of the vital policy improvements necessary to revive the laboring economy. Despite widespread agreement on this fact, the prospects of Congress passing and the President signing a tax reform bill are low.
One reason for this mismatch between political will and policy importance is a lack of pressure from American families on lawmakers. This is…
Backgrounder posted September 12, 2014
Understanding Thomas Piketty and His Critics
Thomas Piketty’s Capital in the Twenty-First Century is a treatise on how wealth inequality evolves in capitalistic economies. It is the most talked-about and most critiqued economics book of 2014 because Piketty’s timing was perfect: He released the English edition when income inequality was being actively debated in the United States. President Barack Obama brought…
Backgrounder posted September 4, 2014
Business Inversions: Tax Reform Is the Only Way to Curb Them
A recent surge of interest in U.S. business inversions—a process whereby an American company merges with a foreign business and moves the combined business’s headquarters to the foreign country—has precipitated calls for Congress to put an end to the practice.
The American public and lawmakers are rightfully concerned about businesses moving their headquarters abroad.…
Testimony posted August 4, 2014
Tax Reform Would Help American Families: Dynamic Scoring Makes it More Likely
Testimony before the Subcommittee on Select Revenue Measures
of the Committee on Ways and Means
U.S. House of Representatives
My name is Curtis S. Dubay. I am Research Fellow in Tax and Economic Policy at The Heritage Foundation. The views I express in this testimony are my own, and should not be construed as representing any official position of The Heritage…
Issue Brief posted June 26, 2014
Congress Should Be Cautious About Expanding the Child Tax Credit
Members of Congress have renewed the discussion of increasing the Child Tax Credit (CTC) to help the beleaguered middle class. Their desire to help the middle class is laudable. The slow recovery and President Barack Obama’s faulty economic policies have hit the middle class hard, but increasing the CTC is not the best way to deliver relief. The better approach would be…
Issue Brief posted June 10, 2014
FATCA Hurts Law-Abiding Americans Living Abroad
On July 1, the Foreign Account Tax Compliance Act (FATCA) will fully take effect. FATCA is supposed to reduce tax evasion by making it harder for tax cheats to abuse tax havens. In practice, however, FATCA is forcing law-abiding American taxpayers residing overseas to bear enormous financial and legal burdens. Congress should reform FATCA so that it does not hurt innocent…