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  • Backgrounder posted March 9, 2015 by Curtis S. Dubay, David R. Burton 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 by Curtis S. Dubay 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 by Curtis S. Dubay 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 by Curtis S. Dubay 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…

  • Commentary posted September 17, 2014 by Salim Furth, Ph.D., Curtis S. Dubay Six Demonstrably False Claims In Thomas Piketty’s Theory Of Wealth

    Thomas Piketty’s “Capital in the Twenty-First Century” became the most talked-about and most critiqued economics book of 2014 before academic readers had a chance to finish the book. When they did, many responded with rebuttals that cut directly to the core of Piketty’s argument. In “Capital,” Piketty makes six main claims. Here, we compare the evidence Piketty offers in…

  • Backgrounder posted September 12, 2014 by Curtis S. Dubay, Salim Furth, Ph.D. Understanding Thomas Piketty and His Critics

    Thomas Piketty’s Capital in the Twenty-First Century[1] 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 by Curtis S. Dubay 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 by Curtis S. Dubay 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 by Curtis S. Dubay 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 by Anthony B. Kim, Curtis S. Dubay 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…

  • Commentary posted May 26, 2014 by Curtis S. Dubay Thomas Piketty’s wealth tax would be an administrative nightmare

    Thomas Piketty’s best-selling treatise “Capital in the 21st Century” elates liberals because it argues on behalf of soaking the rich with excessive taxation. Mr. Piketty’s preferred mechanism for equalizing incomes is to institute a global tax on wealth. But there’s a drawback to Mr. Piketty’s wealth tax: It would tank the world’s economy. It would reduce economic…

  • Commentary posted May 12, 2014 by Curtis S. Dubay Thomas Piketty’s “Capital in the 21st Century” and the Inequality Debate

    Thomas Piketty’s “Capital in the 21st Century” is a smash on the Amazon bestsellers list. It is all the rage in DC and other corridors of influence. Why all the buzz? Because Dr. Piketty, economics professor at the Paris School of Economics, has amassed a novel set of data on income and wealth inequality stretching back hundreds of years using tax returns from the U.K.,…

  • Commentary posted May 8, 2014 by Curtis S. Dubay U.S. Companies Are Moving to Europe to Get Away from Our Awful Corporate Tax Policies

    I hate to say I told you so, but . . . A few months ago I warned that if Congress didn’t lower corporate taxes, U.S. businesses would start moving their headquarters abroad. Lo and behold, two major U.S. businesses now are looking to pack their bags for Europe. Pfizer is trying to acquire AstraZeneca, a U.K.-based pharmaceutical company. If it does, the newly merged…

  • Commentary posted April 16, 2014 by Curtis S. Dubay Lawlessness in Chrysler Bankruptcy Still Hurts the Economy

    This month marks the fifth anniversary of the Chrysler bankruptcy. President Obama will doubtless mark the occasion by talking about how his intervention saved the auto company. More noteworthy, however, is how the lawlessness of that intervention created tremendous uncertainty, which still chills the economy today. Todd Zywicki has written an excellent summary of…

  • Issue Brief posted April 8, 2014 by Curtis S. Dubay Tax Day 2014: How Tax Reform Would Make Filing Taxes Better

    April 15, the day Americans’ tax returns for the previous year are due to the IRS, is fast approaching. Families all over the country are scrambling to find documentation for their incomes and any expenses they incurred that might be deductible, creditable, or exemptible. It is a day of consternation for most families because of the mind-numbing complexity of completing…