Issue Brief posted October 31, 2013
A Repatriation Holiday Would Not Create Jobs
The House and Senate have convened a conference committee in an attempt to reconcile the very different budgets they passed earlier this year.
Some have suggested that, if the Senate refuses to agree to tax reform in the course of negotiations, the House should seek a repatriation holiday instead. A repatriation holiday would eliminate almost all the tax liability…
Issue Brief posted October 29, 2013
Leave Tax Reform and Tax Increases Out of Budget Conference
The recent deal to end the government shutdown and lift the debt ceiling requires the House and Senate to convene a conference committee, where they will seek to reconcile the respective budgets each chamber passed this year. Conferees will face strong pressure to strike a “grand bargain” to lower the deficit by both cutting spending and raising taxes.
This is the wrong…
Issue Brief posted September 19, 2013
Tax Reform Should Eliminate the Deduction for State and Local Taxes
House Ways and Means Committee chairman Dave Camp (R–MI) and Senate Finance Committee chairman Max Baucus (D–MT) will face many difficult decisions as they proceed on tax reform. Among them will be whether to retain certain deductions currently in the tax code, including the deduction for state and local taxes.
Tax reform should eliminate the state and local tax…
Backgrounder posted September 12, 2013
A Territorial Tax System Would Create Jobs and Raise Wages for U.S. Workers
An intense debate is raging over the proper way to repair the broken system the U.S. uses to tax its international businesses. There is widespread agreement that the current system destroys jobs and suppresses wages for U.S. workers. However, there is a sharp division about how to fix the system’s shortcomings. One side argues for strengthening the current worldwide…
Issue Brief posted June 14, 2013
Senate Immigration Bill Does Not Require Payment of All Back Taxes
There are many serious flaws in the controversial Senate immigration bill, the Border Security, Economic Opportunity, and Immigration Modernization Act (S. 744). One such flaw is that it fails a standard of basic fairness to which immigration has long been held: It does not meaningfully require illegal immigrants to pay back taxes, interest, and penalties on all the…
Issue Brief posted June 4, 2013
CBO Report on “Tax Expenditures” Has It Wrong
The Congressional Budget Office (CBO) released a report on the distribution of “tax expenditures” that some are wrongly using to push for additional tax increases. This was inevitable because the report takes the wrong approach to the issue.
The CBO misnames “tax expenditures.” Congress has explicitly inserted these provisions (routinely called…
Backgrounder posted June 4, 2013
PEP and Pease Hurt Larger Families Most and Slow Growth
After a 12-year hiatus, Congress and President Barack Obama reinstated the personal exemption phaseout (PEP) and “Pease” in the fiscal cliff deal struck in the early hours of New Year’s Day. PEP raises taxes on high-income taxpayers by reducing, then eliminating, the value of their personal exemptions. Pease—which is named after Representative Donald J. Pease, who is…
Issue Brief posted May 16, 2013
Net Tax Increase in Obama’s Budget Over $1 Trillion
President Obama released his fiscal year 2014 budget almost two months after it was due by law. With all that extra time, the President had plenty of opportunity to clearly account for his tax increases. But like his budgets from previous years, this year’s effort hides the total tax increase he proposes.
For example, rather than put it with the other major tax…
Issue Brief posted May 15, 2013
Obama’s IRA Cap: A Cap on Defined-Contribution Retirement Savings Plans
President Obama proposes to cap the total value of taxpayers’ defined-contribution retirement savings accounts—such as Individual Retirement Accounts (IRAs) and 401(k)s—according to the maximum benefit permitted under defined-benefit plans. In 2013, that would be around $3.4 million.
This proposal would be a step backwards for savings policy, because it would increase…
Issue Brief posted April 9, 2013
The Dos and Don’ts of Tax Reform
Congress continues to work toward badly needed fundamental tax reform, and Ways and Means Committee Chairman Dave Camp (R–MI) and Senate Finance Committee Chairman Max Baucus (D–MT) are leading the way. Chairman Camp in particular is carefully and methodically laying the necessary groundwork.
As the congressional tax writing committees move forward on broad structural…
Issue Brief posted April 3, 2013
Tax Day 2013: No More Tax Increases Shall Pass
Right now, Americans are enduring the pain of filling out confusing tax forms before the April 15 deadline for completing their 2012 income taxes. The frustration they feel today will be even worse next year, however. That is when they will feel the sting of recent tax increases resulting from the fiscal cliff deal Congress struck earlier this year: