The Distributional Consequences of Federal Assistance for Higher Education : The Intersection of Tax and Spending Programs
For nearly a decade, federal higher education subsidies have increasingly been delivered through the tax code rather than through direct spending programs such as grants, loan subsidies, and work study. This paper reviews the results of using new modules in the TRIM and Tax Policy Center microsimulation models to estimate the distributional impacts and expenditure and revenue effects of major federal higher education tax and spending policies. In addition, the paper reports estimates of the effects of some prototypical policy changes in the Pell Grant program as well as in the Hope and Lifetime Learning tax credits.
Tax Stimulus Report Card: Ways and Means Bill
The Tax Policy Center has graded the key tax provisions of the pending House stimulus bill (the “American Recovery and Reinvestment Tax Plan of 2009″). Our grades, which rely on the bill’s legislative language, focus on how well these measures would boost the economy in the short run. Accompanying write-ups describe current law, the proposed change, and the short- and long-term effects on the budget, the economy, fairness and tax complexity. We will update the report card as we learn more about the provisions and as the stimulus bill moves through Congress.
An Updated Analysis of the 2008 Presidential Candidates’ Tax Plans: Executive Summary
Both John McCain and Barack Obama have proposed tax plans that would substantially increase the national debt over the next ten years, according to an updated analysis by the non-partisan Tax Policy Center. Compared to current law, TPC estimates the Obama plan would cut taxes by $2.8 trillion from 2009-2018. McCain would reduce taxes by nearly $4.2 trillion. Under current law, the 2001 and 2003 tax cuts would expire in 2010 and the Alternative Minimum Tax would remain in full force.
An Updated Analysis of the 2008 Presidential Candidates’ Tax Plans: Executive Summary - Revised September 15, 2008
Both John McCain and Barack Obama have proposed tax plans that would substantially increase the national debt over the next ten years, according to a newly updated analysis by the non-partisan Tax Policy Center. Compared to current law, TPC estimates the Obama plan would cut taxes by $2.9 trillion from 2009-2018. McCain would reduce taxes by nearly $4.2 trillion. Obama would give larger tax cuts to low- and moderate-income households and pay some of the cost by raising taxes on high-income taxpayers. In contrast, McCain would cut taxes across the board and give the biggest cuts to the highest-income households.
International-Taxation Scholar Rosanne Altshuler to Become Co-Director of the Urban-Brookings Tax Policy Center
Rosanne Altshuler, a Rutgers University economist specializing in international taxation and the former senior staff economist for President George W. Bush’s Advisory Panel on Federal Tax Reform, will become codirector of the Urban-Brookings Tax Policy Center in January and a principal research associate at the Urban Institute.
Huckabee Tax Plan Would Be A Disaster
In this “Marketplace” commentary, Len Burman, director of the Tax Policy Center, explains why presidential candidate Mike Huckabee’s FairTax proposal is misnamed.
McCain’s Gas-Tax Plan is On Empty
Presumptive Republican presidential nominee Sen. John McCain wants to suspend the federal gas tax for the summer travel season. Truckers say they like the idea. In this Marketplace commentary, Len Burman, Director of the Tax Policy Center explains why Senator McCains proposal wont get us where he wants to go.
http://marketplace.publicradio.org/display/web/2008/04/17/burman_commentary/
The Distribution of Federal Taxes, 2008-11
Overall, the federal tax system is highly progressive. On average, households with higher incomes pay taxes that are a larger share of their income. The tax cuts passed since 2001 have reduced progressivity with the notable exception of the 2008 stimulus package. Almost all provisions of the tax cuts are set to expire by the end of 2010. Barring legislative action, effective tax rates will rise across the income spectrum in 2011 with the largest increases in the upper income classes. This paper summarizes the Tax Policy Center’s latest estimates of the distribution of federal taxes for 2008 through 2011.
Alan Reynolds and TPC Corporate Tax Estimates
Retrieved from the dustbin of the Wall Street Journal Letters Editor
In his Nov. 1 Wall Street Journal op-ed, Alan Reynolds excoriates journalistic fact checkers for their carelessness, citing some of our estimates for support. But then he is similarly careless when he claims the Tax Policy Center (TPC) estimate of corporate rate cuts, “…is also nonsense because it’s entirely static. The estimate assumes raising or lowering corporate tax rates has no effect on corporate decisions about where to locate production, income or costs, and no effect on the economy’s performance.”
Trapped by the AMT
Len Burman of the Tax Policy Center and other tax experts frequently bemoan the horrendous complexity of the AMT and its potential to trap unwary taxpayers. But until now, we have not had data on how many taxpayer errors the AMT causes.