Tag: Taxation

Partisan Politics Disenfranchises the Minority Party »

The House and Senate have each passed their versions of a tax reform bill. Those bills now go to a conference committee consisting of members of the House and Senate to reconcile their (minor) differences so that both houses can vote on and pass the same bill. The conference committee is just a formality....
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Tax Tinkering »

It appears the Congress is getting closer to passing a tax reform bill. While there are differences between the current House and Senate versions, they are close enough that it is easy to see that they can be reconciled and tax reform legislation can be passed this year. Reform on the individual income tax...
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Illinois Passes Its First, Country’s 18th, Tax-Credit Scholarship Program »

This week the Illinois legislature passed legislation creating the country’s 18th tax-credit scholarship program, and the bill is on its way to Gov. Bruce Rauner, who’s said he’ll sign it. UPDATE: Gov. Rauner signed the bill (see here). Officially called the Invest in Kids Act, Illinois’ flagship tax-credit scholarship program was passed as part...
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The Double Tax on Saving »

In an earlier post I argued for expanding tax-deferred retirement accounts because they eliminate the double tax on saving that exists under the current tax system. Here is the basic idea. People earn income and pay income tax on that income. If they save it and then earn interest (or dividends, or capital gains,...
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Tax Reform V: Eliminate the Estate Tax »

The estate tax amounts to a penalty on the heirs of those who have accumulated wealth over their lifetimes. It raises less than 1% of federal revenues, so it provides almost no benefit to anybody, but imposes a big cost on a few. There are many ways for the wealthy to avoid the estate...
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Tax Reform IV: Corporate Tax Reform »

The United States has one of the highest corporate income tax rates in the world. While both the Obama administration and Trump administration have criticized American companies for moving operations off-shore, and considered a variety of policies for punishing them if they do, a better approach would be to design policies that make it...
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Tax Reform III: Tax Employer Health Care Benefits; Offer a Tax Credit to Health Insurance Purchasers »

In an earlier blog post I suggested eliminating all personal tax deductions, with a possible exception related to health care. One of the well-publicized problems with the American health care system is that employer-provided health insurance is not taxed, pushing us to a system in which people get health insurance from their employers. A...
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Tax Reform II: Lower Rates; Eliminate Deductions »

As Congress considers tax reform, the focus on the personal income tax should be to lower rates and eliminate all deductions except for a standard deduction that applies to everyone. Lower rates enough to offset the increased revenue from eliminating deductions, and set the standard deduction at a level that raises the same amount...
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Tax Reform I: Expand the IRA »

As Congress turns its attention to tax reform, one desirable change would be to expand the availability of IRA accounts to more taxpayers, with higher limits, and for purposes other than retirement. I’ll follow up with more tax reform recommendations in later posts, and apologize for making my first suggestion a somewhat technical one....
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Prosperity, Not Soda Taxes, Fosters Good Health »

Berkeley’s soda tax is being trumpeted as a success because a new study finds that purchases of sugary soft drinks fell by 10 percent in the city from March 2015 to February 2016. Of course, soda-tax advocates claim that the penny-per-ounce excise tax, which took effect in 2015, is fully responsible for the drop....
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  • MyGovCost.org
  • FDAReview.org
  • OnPower.org
  • elindependent.org