Tax Analysts Blog

Tuesday, February 8, 2011
President Obama and liberal Democrats are gunning to raise oil company taxes to reduce the deficit and to pay for tax breaks for green energy. They are tapping into the public's natural hostility to the companies' that Americans pay $50 every time they fill up their gas tank. Oil companies are big....
Tuesday, February 8, 2011
In this morning's New York Times you can read how Wall Street is lobbying against SEC budget cuts.Yes, regulated industries well understand that a poorly funded regulator can be as dangerous and as insensitive to your needs as a wounded bear. You see a lot of the same thing in the tax world. Practi...
Sunday, February 6, 2011
His budget will not be released until February 14, but if President Obama has any sweets to deliver to the business community he will surely do it at his speech tomorrow to the U.S. Chamber of Commerce. In his State of the Union message--as part of his charm campaign with corporate America--the Pre...
Tuesday, January 25, 2011
Fairness is a big issue on Capitol Hill. That's especially true when it comes to handing out the goodies. For example, aid to the states in the 2009 stimulus legislation was spread evenly -- no less than $194 per person (in Florida) and no more than $226 per person (in Utah). A good policy reason i...
Monday, January 24, 2011
GE is one of the biggest beneficiaries of the current corporate tax system. If the President's pick to lead his new Council on Jobs and Competitiveness, GE CEO Jeffrey Immelt, gets his way his company will benefit even more. GE is renowned for having one of the most sophisticated tax departments i...
Friday, January 21, 2011
I had the privilege of testifying before the Ways and Means Committee yesterday. Below is the text of my oral testimony. The official witness testimony along with footnotes can be found here. Good morning, Chairman Camp, Ranking Member Levin, and other members of the Committee. Thank you for this...
Monday, January 10, 2011
A new day is dawning, and on Capitol Hill, conservatives must make a choice. Will they follow the easy path of politics as usual, or will they practice what they preach and adhere to their core principles? The high-profile controversy over earmarks in appropriations bills is a prime example of this...
Monday, January 3, 2011
"The death of cap-and-trade clears the way for a passel of subsidies and incentives for exploration and innovation." -Dan Schnur, political analyst, in Sunday's Washington Post America's conservatives and the business community are pleased with themselves for thwarting any chance of a reasoned poli...
Monday, December 27, 2010
On December 24 the Japanese cabinet headed by Prime Minister Naoto Kan agreed to a budget including a cut in the corporate tax rate, effective April 1, 2011, from 39.5 percent to 35 percent. Barring unforeseen circumstances the Japanese parliament will approve this plan early in 2011. After this ch...
Wednesday, December 22, 2010
The first five suggestions are crucial for getting conservatives to be the driving force behind tax reform. (1) Get conservatives to recognize tax expenditures as government spending. Relabel "tax expenditures." Call them "tax earmarks." This first point is absolutely critical. Once conservatives...
Monday, December 20, 2010
Earlier this year the British Labour Party was staging a comeback in the polls when--in the name of austerity--it proposed a payroll tax hike. That was the last nail in the coffin on its 13 years in power. No rational or successful politician will propose a middle-class tax hike going into an elect...
Wednesday, December 15, 2010
Newsflash: We interrupt the Capitol Hill Chorus Holiday Special featuring traditional favorites of “O Holy Tax Reform” “Happy Christmas (Deficit is Over)” and “Have Yourself a Merry Little Tea Party” to bring you this breaking news: There will be no pain on Capitol Hill this holiday season. F...
Wednesday, December 8, 2010
Basic economics tells us (1) America needs larger deficits in the short-term to fight unemployment and (2) America needs massive deficit reduction to promote long-term economic growth and prevent a Greek-Irish style fiscal meltdown. The Obama-Republican tax plan achieves the first goal admirably. T...
Thursday, November 18, 2010
The most difficult thing to understand about the President's deficit reduction commission is its love affair with tax reform. Under one proposal it would cut $1.1 trillion in tax expenditures, but only $80 billion of that would be for deficit reduction. So, less than 10 percent of the revenue for b...
Sunday, November 14, 2010
In this post-crisis world governments and big banks are joined at the hip. There is no line between conventional lenders and lenders-of-the-last resort. Banks like Bank of America are really becoming banks of America. The Irish government has guaranteed all of the massive liabilities of its bubble-...
Wednesday, November 10, 2010
This may sound snobby and elitist—but there’s no avoiding it: Americans need a good lesson in basic economics. How can we say such a terrible thing? Here’s how: every poll and every politician in every congressional district says the nation’s number one problem is lack of jobs. But they will no...
Monday, November 8, 2010
Last week we talked about the first stage of the U.S. fiscal crisis: the slow erosion of long-term growth because of mounting government debt. This phenomenon arises from a straightforward application of conventional supply-side economics. Government borrowing absorbs private saving that would othe...
Monday, November 1, 2010
It is undeniable that we are on the path to fiscal collapse. This decline will occur in two stages. First there is the decay as the swelling national debt wears away the economy's foundations and commits more and more future income to foreign creditors. We are already in stage one. In stage two a l...
Wednesday, October 27, 2010
Some folks are getting excited about tax reform. The sweeping Wyden-Gregg plan is getting attention. And there are a reports (for example, here and here) that the President's deficit reduction commission could propose cutting back prominent middle class tax benefits--like the mortgage interest dedu...
Monday, October 25, 2010
In an expertly choreographed effort to win public sympathy, (articles here, here, and here) our nation's largest and most profitable companies are lobbying Congress to enact special tax relief for "trapped" foreign profits. But how did the money get there in the first place? Answer: The multinatio...