Tag: Taxation
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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Interest Groups and Tax Reform

In a recent post in The Beacon, I said that President Trump’s tax reform proposal is a move in the right direction. But I find part of it very troubling: He wants to keep the mortgage interest deduction and the deduction for charitable contributions for individual taxpayers. Both of these deductions have reasonable justifications,...
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Trump’s Tax Plan: A Move in the Right Direction

President Trump released an outline of changes he hopes to see in the federal income tax. If his proposal became law, we would have a better tax system than we do now. One major change would be reducing the corporate income tax rate from 35% to 15%. The US has one of the highest...
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Trump’s Tactic Is Certain to Create “Regime Uncertainty”

President-elect Donald Trump’s so-called Carrier deal, which seems to amount to a threatening conversation he had with Carrier’s managers, combined with some tax concessions by the state of Indiana, exemplifies the approach he has more or less announced he will take in dealing with U.S. companies that propose to move operations abroad. He threatens...
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Tax Reform for Investment Income

Executive Summary The unexpected election of an at least nominally Republican president, along with Republican control of both Houses of Congress, presents a unique opportunity for the incoming Congress to make meaningful reforms to the tax system. One major problem has been the over-taxation of corporate income. Another is the under-taxation of carried interest....
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Whether You Know It or Not, You Are a Tax Slave

In the antebellum South, it was not uncommon for slaves to rent themselves from their masters. As a young man, Frederick Douglass did so, for example. His owner gave him leave to go out on his own, to find employment where he could, and to pocket the pay he received for such work, except...
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Why Michael Bloomberg’s Pro-Soda-Tax Ad Is Misleading

Former New York City Mayor Michael Bloomberg is helping to bankroll a television-commercial campaign in favor of proposed soda taxes in Oakland and San Francisco, known as Measure HH and Proposition V, respectively, which will appear on each city’s November ballot. You can’t miss the commercial if you live in the Bay Area, as...
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