Backgrounder posted August 18, 2015
An Innovation Box for the U.S.? Congress Should Focus on Business Tax Reform Instead
There is growing talk of Congress pursuing tax reform through the creation of an “innovation box” instead of focusing on broad business tax reform. This would be a mistake.
An innovation box, often called a patent box in Europe, offers lower tax on certain types of income derived from intellectual property, or IP.
Earlier this year, it seemed possible Congress and…
Backgrounder posted August 3, 2015
New Generation of Tax Reform Offers Greater Potential for Growth
Earlier this year, Senators Mike Lee (R–UT) and Marco Rubio (R–FL) released a tax reform plan. Their plan would reduce tax rates, lessen double taxation, and eliminate many tax preferences that do not promote economic growth. These policies have traditionally been part of tax reform.
However, Lee–Rubio deviates from traditional tax reform in one important way: It…
Issue Brief posted July 28, 2015
The Senate Can Use Tax Extenders as an Opportunity to Improve the Tax Code
The tax extenders are a group of approximately 50 tax-reducing policies that expire regularly. Congress has traditionally extended them just as regularly as they expire. Late last year, Congress retroactively renewed them for 2014, which means they are currently expired.
The Senate Finance Committee marked up its version of this year’s tax extender bill recently. In that…
Issue Brief posted July 14, 2015
New Model Would Aid Dynamic Scoring of Transportation Spending, but Changes Are Needed
Congress may soon ask the Congressional Budget Office (CBO) to score a transportation bill under the new dynamic scoring rules it passed earlier this year. A recent report from former CBO Director Douglas Holtz-Eakin and Michael Mandel provides a model for how the CBO could carry out that analysis. The model needs important improvements to provide Congress with the…
Testimony posted June 25, 2015
Congress Should Only Make Changes to Repatriation Policy When Establishing a Territorial System
Testimony before the
Subcommittee on Select Revenue Measures of the Committee on Ways and Means
United States House of Representatives
June 24, 2015
Curtis S. Dubay
Research Fellow in Tax and Economic Policy
The Heritage Foundation
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…
Backgrounder posted June 4, 2015
How Congress Should Reform Business Taxes
Fundamental tax reform remains a top agenda item for many in Congress, especially for House Ways and Means Committee Chairman Paul Ryan (R–WI) and Senate Finance Committee Chairman Orrin Hatch (R–UT). The country needs fundamental tax reform because the tax code is stifling economic freedom and preventing the economy from being vibrant and prosperous. Fundamental tax…
Special Report posted June 3, 2015
Saving Internet Freedom
Table of Contents
Net Neutrality: Reining in Innovation
Internet Governance: Past, Present, and Future
Regulatory Barriers to Online Commerce
Protecting Internet Commerce from
Undue Tax Burdens
Copyright and the Internet: Getting the Balance Right
The Intersection of Internet Freedom and Cybersecurity
E-mail Digital Privacy
In the space…
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.…