Backgrounder posted June 19, 2013
The Simple Economics of Pro-Growth Tax Reform
The essential principle for pro-growth tax policy is simply this: Minimize tax distortions to the incentives guiding individual decisions. The simplicity of this guide may surprise because tax policy often appears—and indeed often is—a dauntingly complicated subject. Fundamental tax reform is equally so. Likewise, understanding the operational processes of economic growth…
Backgrounder posted June 19, 2013
The Big Choice for Jobs and Growth: Lower Tax Rates Versus Expensing
Are lower tax rates more or less important than accelerated depreciation or expensing for economic growth? Long at the heart of debate surrounding corporate tax reform, this question may soon be center stage.
Welcome pressure is building to lower corporate income tax rates to strengthen the economy and to level the global playing field. Other nations have reduced their…
Issue Brief posted June 18, 2013
Soaring National Debt Remains a Grave Threat
Federal government debt has nearly doubled since President Barack Obama took office and is projected to increase 50 percent over the next decade—and then rise rapidly thereafter—under existing policies. As federal debt has soared, so have concerns about America’s future.
Used properly, debt can safely finance private and government investment in productive capital to…
Backgrounder posted June 18, 2013
The Many Real Dangers of Soaring National Debt
Federal government debt has nearly doubled since President Barack Obama took office. Recent progress toward reducing the annual budget deficit is welcome, yet federal debt is still projected to increase 50 percent over the next decade—and then rise rapidly thereafter—under existing policies. As federal debt has soared, so have concerns about America’s future. Used…
Issue Brief posted February 14, 2013
Budget Cuts Would Not Harm the Economy
The Congressional Budget Office projects that the federal budget deficit will exceed three-quarters of $1 trillion in 2013. The U.S. economy continues to badly underperform, leaving millions of Americans out of work, depressing wage gains, and restricting opportunities. Despite a broad consensus favoring deficit reduction, some worry that reducing the budget deficit too…
Issue Brief posted January 3, 2013
A New, Extra-Extraordinary Debt-Ceiling Tool
The federal government has once again hit its statutory debt limit. For the next few weeks, Washington will be funding its budget shortfalls through the Treasury Department’s traditional “extraordinary” measures. This confirms the bad news that government continues to overspend to the tune of over a trillion dollars per year. The good news is that hitting the debt limit…
Issue Brief posted November 26, 2012
Tax Policy: Obama Is Still Wrong on Tax Rates
In his first press conference after the election, President Barack Obama said, “What I’m not going to do is extend the Bush tax cuts for the wealthiest 2 percent that we cannot afford and according to economists will have the least positive impact on the economy.”
The good news is that President Obama apparently truly believes what he is saying. The bad news is that…
Issue Brief posted November 14, 2012
The Lurking Dangers in the Hubbard Tax Hike Compromise
Glenn Hubbard, dean of the Columbia Business School and until recently the top economist in the Romney campaign, opined in the Financial Times on November 13 that Congress and President Obama should seek to raise taxes on the well-to-do by means other than raising tax rates. Hubbard suggested scaling back the deductions available to upper-income taxpayers.
Issue Brief posted November 2, 2012
October’s Obama Jobs Deficit One Last Clear Sign of Failure
“You are what your record says you are.” So says Bill Parcells, three-time Super Bowl–winning coach. Athletes, coaches, and commentators can spin the numbers with the best of politicians, but in the end, you are what your record says you are.
The record on President Obama’s economic policies is simply dismal. Despite a massive surge of deficit spending pushing publicly…
Issue Brief posted October 11, 2012
Attacks on Tax Reform Miss the Mark
Tax reform proposals like Heritage’s New Flat Tax, Ways and Means Committee Chairman Dave Camp’s plan, and Governor Mitt Romney’s plan are susceptible to unfair attacks by the media, think tanks, and politicians. President Obama, for example, completely misstates the facts regarding Governor Mitt Romney’s tax reform proposal by citing an unfair think tank analysis.…
Issue Brief posted September 26, 2012
Obama Could Prevent a Made-in-Washington Recession
The Congressional Budget Office (CBO) forecasts a recession for 2013. Forecasters rarely anticipate a recession. Almost by definition, recessions surprise. Some unexpected force or forces conspire to so disrupt the economy that it contracts.
What makes this recession different, and predictable, is that the disruptive force is Washington policies and, even more,…