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  • Backgrounder posted April 19, 2005 by Norbert J. Michel, Ph.D., J. Scott Moody, Ralph A. Rector, Ph.D. Raising the Social Security Wage Cap Would Hurt Small Businesses

    Groups such as the American Association of Retired Persons (AARP) have proposed to "fix" Social Security by raising the $90,000 cap on the amounts of salaries and wages that are subject to the Social Security payroll tax. Even if the 12.4 percent payroll tax rate remains untouched, raising the payroll tax cap would affect millions of small-business owners, slow…

  • WebMemo posted April 12, 2005 by Norbert J. Michel, Ph.D. The Perfect Target for Tax Reform: The Corporate AMT

    If Congress considers broad tax reform later in the year, its legislation may include provisions to eliminate the individual and corporate alternative minimum tax (AMT).[1] That would be welcome news for the more than 30 million taxpayers who are likely to face the individual AMT by 2010.[2]   Opponents of tax reform will almost surely attack repeal of the corporate AMT…

  • WebMemo posted March 29, 2005 by Norbert J. Michel, Ph.D. The President's Savings Plans: Good for Retirees? and Everyone Else

    Previous attempts to solve Social Security's problems have relied on a mix of benefit cuts and tax increases, but this approach is not a long-term solution. A more lasting solution to Social Security's problems involves a two-pronged approach that allows workers to invest part of their payroll taxes in their own accounts while also removing barriers to saving…

  • WebMemo posted March 17, 2005 by Norbert J. Michel, Ph.D., J. Scott Moody Raising the Social Security Wage Cap Would Hurt Small Business

    Groups such as AARP propose to "fix" Social Security by raising the $90,000 cap on the amount of salaries and wages that are subject to Social Security's payroll tax. Even if the 12.4 percent payroll tax rate remains untouched, raising the payroll tax cap would impact millions of small business owners, slow economic activity, and cost jobs. That is a high price to…

  • Commentary posted March 3, 2005 by Norbert J. Michel, Ph.D. Tax Group Uses Shoddy Methods

    Everybody knows the phrase "close enough for government work" is a joke, but few people would claim that it applies to the IRS. Although it might be tempting to fill in your tax forms by saying you owe "between $0 and $5,000" and then remit nothing to the IRS, this probably isn't a wise strategy. So why does Citizens for Tax Justice keep recycling corporate…

  • Center for Data Analysis Report posted January 14, 2005 by Norbert J. Michel, Ph.D. Did the Bush Tax Cuts Substantially Reduce Tax Payments by Corporations? A Critique of the Citizens for Tax Justice Report

    The nonprofit group Citizens for Tax Justice (CTJ) recently published a report titled “Corporate Income Taxes in the Bush Years.”[1] The study examines the annual financial reports of a group of large U.S. corporations and purports to show “the federal income taxes paid or not paid by 275 of America’s largest corporations in 2001, 2002, and 2003.” Interestingly, the paper…

  • Commentary posted November 29, 2004 by James L. Gattuso, Norbert J. Michel, Ph.D. Hollywood, Values & P2P Lawsuits

    The debate over "moral values," first raised in the aftermath of Election Day, continues. Now it's the appropriateness of risqué ads for "Monday Night Football" and the popularity of TV's racy "Desperate Housewives" that's causing the latest heartburn. Yet the values issue also was raised recently in a much different context: the fight against the theft of…

  • Center for Data Analysis Report posted November 24, 2004 by Norbert J. Michel, Ph.D., Ralph A. Rector, Ph.D. A Research Program on the Interplay Between Entrepreneurial Activity and Tax Policy

    People have produced such amazing products during the past few years that it is easy to forget that, after their unveiling, machines such as the printing press and the steam engine were viewed with just as much awe as the microprocessor is today. Yet what is clumsily referred to as "technological innovation" has consistently led to controversy as new products and…

  • WebMemo posted November 11, 2004 by James L. Gattuso, Norbert J. Michel, Ph.D. Hollywood, Values, and P2P Lawsuits

    If exit polls can be believed, issues of moral values were among the most important factors in last week's presidential elections. Pundits are still weighing the meaning of that vote and what it means for public policy. Yet buried beneath the election news, the values issue was also raised last week in a much different context, the fight against the theft of…

  • WebMemo posted October 25, 2004 by Norbert J. Michel, Ph.D., Ralph A. Rector, Ph.D. Dividend Policy and the 2003 Tax Cut: Preliminary Evidence

    Two recent National Bureau of Economic Research (NBER) papers begin the formal study of whether the 2003 dividend tax cuts affected corporate dividend policy. Economists have debated for years whether lowering individuals' taxes on dividends would lead to increased corporate payouts, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) provides a…

  • Backgrounder posted October 19, 2004 by Norbert J. Michel, Ph.D. Why the Budget Deficit Should Not Stop Tax Reform: The EnsuingStruggle over "Neutrality"

    President George W. Bush recently announced that he will appoint a bipartisan advisory panel to recom­mend "revenue-neutral" tax reform options to the Department of the Treasury. The President's commit­ment to tax reform has many reform activists excited, but the inclusion of the term "revenue-neutral" in the agenda should give them pause. Revenue neutrality creates…

  • WebMemo posted October 13, 2004 by Norbert J. Michel, Ph.D. Anything but Avoidance: Citizens for Tax Justice's BlunderingCorporate Tax Report

    The nonprofit group Citizens for Tax Justice (CTJ) recently blasted U.S. corporations for increasing their "tax avoidance" behavior during the presidency of George W. Bush. The CTJ report "Corporate Income Taxes in the Bush Years"[1] examines the annual financial reports of a group of large U.S. corporations and purports to show how little these companies paid in…

  • Backgrounder posted August 23, 2004 by Norbert J. Michel, Ph.D. Internet File Sharing: The Evidence So Far and What It Means for the Future

    A heated public debate started when the original "file-sharing" service, Napster, went on-line in 1999. Napster was shut down in 2001, but the debate raged on as other file-sharing services -- commonly referred to as peer-to-peer (P2P) networks -- took its place. Advocates of file sharing argue passionately that the practice has not harmed album sales, and opponents…

  • WebMemo posted June 30, 2004 by Norbert J. Michel, Ph.D., William W. Beach Questions and Answers About Inflation

    The Federal Reserve has announced that it will raise its target interest rate to 1.25 percent to stave off inflation. The following provides a basic guide to inflation-what it is, how it works, and how the Fed tries to manage it.   Q: What is inflation? A: A basic definition of inflation is that inflation is a rise in the general price level throughout the economy.…

  • Commentary posted June 29, 2004 by Norbert J. Michel, Ph.D. Taking Stock of Expensing

    At the start of next year, barring any surprises, public companies will have to list employee stock options as an expense on their income statements. Finally, after a host of public comments and ludicrous political bashing, the accounting world's independent rulemaking body, the Financial Accounting Standards Board, has its rule ready to go. But Rep. Richard…