Tax Analysts Blog

Thursday, October 11, 2012
In this morning's Wall Street Journal David Wessel gives a very nice summary of the issues surrounding dynamic scoring of tax bills. As Republicans have in so many prior episodes of tax controversy, and as they did during the August 2011 failed budget negotiations, Mitt Romney is invoking the growt...
Wednesday, October 10, 2012
We've heard it many times before: a group of Senators--this time the Gang of Eight meeting in Mt. Vernon, Virginia--are negotiating a "grand bargain" deficit reduction plan. Unless they've got something new up their sleeves, this plan will probably include spending cuts of about $3 trillion and tax...
Tuesday, October 9, 2012
As noted in a prior post, the critical question for the degree of progress on fiscal policy after the election is the Republican stance on tax increases. This morning's Financial Times reports "a senior Republican aid" in the House arguing that if Obama is elected "we're not going to have much leve...
Friday, October 5, 2012
In today's Washington Post Harvard professor Robert Pozen suggests, as I have in a previous post, that a lower corporate rate could be paid for with a limitation in the deduction on corporate interest payments. But who cares what two tax experts think? As I was surfing the net the other day I disco...
Wednesday, October 3, 2012
Cutting tax breaks one-by-one is trench warfare with some of America's most powerful political lobbies. That's why real world tax reformers always eventually start looking at limits that hit all tax breaks a little bit. The complexity, the diffused effect, and the idea of shared sacrifice all seem...
Tuesday, October 2, 2012
The latest "news" from this morning's New York Times is the same old stuff: Senators are considering a bipartisan "grand bargain" deficit reduction plan of about $4 trillion over 10 years. House Republicans will not consider tax increases. President Obama will not consider a deal without tax increa...
Monday, October 1, 2012
I often hear informed individuals shrug off concerns about the fiscal cliff. It is true that the expiration of the Bush tax cuts will only have lasting effects if they are not extended for the whole year. Because the bulk of tax cuts (that is, for families over $250,000) will almost certainly be ex...
Wednesday, September 26, 2012
The big stir about Romney's tax plan--that if you fill in the blanks with likely revenue raisers the plan will result in tax increase for the middle class--all stems from the fact that tax breaks are not evenly spread over income categories. Proportionately, the poor benefits most from the EITC, t...
Monday, September 24, 2012
In this morning's Washington Post columnist E.J. Dionne ponders what will happen after the election. He asks the critical questions: "Will Republicans give up on obstruction and the reckless use of the filibuster? Will they be open to compromise on the budget?" According to one theory--favored by...
Saturday, September 22, 2012
At the moment all the chatter in tax news is about the release of Romney's 2011 tax return. That's politics. Left unnoticed and buried in the middle pages of the Washington Post is an article with huge implications for future policy. In "GOP Retreat on Taxes Likely if Obama Wins" Lori Montgomery an...
Friday, September 21, 2012
Using its prestige and its unique powers of subpoena, the Senate Permanent Subcommittee on Investigations yesterday afternoon put the spotlight on the billions U.S. multinationals are saving with sophisticated tax planning. Committee Chairman Carl Levin (D-Michigan) and Ranking Republican member To...
Wednesday, September 19, 2012
In today's Wall Street Journal former hedge-fund manager Andy Kessler makes the age-old argument that redistribution from rich (job creators) to poor hurts the poor. Indeed, there is an element of truth to his line of reasoning. If the wealthy do more and better investing, the economy can grow and...
Tuesday, September 18, 2012
In today's Financial Times former Clinton economic advisor Laura D'Andrea Tyson made the case for lowering corporate tax rates and paying for those rate cuts by raising the current 15-percent rate on capital gains (instead of broadening the corporate tax base). "A more efficient and progressive way...
Monday, September 17, 2012
They'll have to eliminate so many deductions, like the ones for home mortgages and charitable giving, that middle-class families will see their tax bill go up $2,000 a year while people making over $3 million a year will still get a $250,000 tax cut. -- Former President Clinton, Sept. 5 I refuse to...
Tuesday, September 4, 2012
Most Republicans have proposed that the United States adopt a territorial system of international taxation. However, even if Mitt Romney wins the November election, unprecedented long-term budget pressures will make it difficult for Congress to enact any territorial system that is as generous as bu...
Monday, August 6, 2012
Should interest expense costs be deductible? To business owners, accountants, and tax lawyers, the question seems totally out of left field. In their eyes, the cost of borrowing money is an expense like any other. Of course it should be deductible. The owner's share of business receipts is what's l...
Monday, July 2, 2012
The WIN America Campaign did not win. The group formed solely for the purpose of securing a repeat of the one-time tax holiday for repatriated foreign profits has little chance of success anytime in the foreseeable future. "For the time being, WIN has ceased lobbying activities given that we're hea...
Friday, June 29, 2012
In the Roberts opinion the so-called “individual mandate” is not viewed any differently than hundreds of other provisions in the tax law where Congress uses monetary incentives to do its bidding. As with any other tax incentive, if you do not do what Congress wants—in this case, buy health insur...
Monday, May 21, 2012
A combination of spending cuts and tax increases could bring the economy to its knees at the end of 2012. By our count, the economy must deal with nine significant fiscal events that will be automatically triggered by current law if Congress and the president take no action. Together these events c...
Monday, April 30, 2012
Right now voters are leaning toward reelecting President Obama. An average of the latest public opinion polls gives Obama a lead of 48 percent to 44 percent over former Massachusetts Gov. Mitt Romney. Polls also show that Obama is favorably viewed by 50 percent of voters compared with 35 percent fo...