Food stamps, welfare, Medicaid and other tax and transfer systems can sometimes penalize people for earning that extra dollar of income, Steuerle writes.
Just in time for Valentine’s Day, the Tax Policy Center has updated its marriage bonus and penalty calculator to reflect the provisions of the American Taxpayer Relief Act of 2012. Williams discusses three tax provisions that will increase marriage penalties a lot in 2013 for many high-income couples.
Gale offers three reactions to the Congressional Budget Office's latest Budget and Economic Outlook. While we do not face an imminent budget crisis, Gale writes, the data in the Outlook imply that we are not out of the woods.
The federal estate tax is finally permanent, Williams writes, although fewer than one in 700 estates will owe estate tax in 2013.
Work and family tax credits are needlessly complex for immigrant families whose children's legal status and residency determine their eligibility those credits, Maag writes.
With Washington apparently stuck in gear on taxes, it may be tempting to see the states as leading a way to reform, Gordon writes, but the idea of states as laboratories for federal tax reform is fundamentally flawed.
Business profits should be taxed as ordinary income, Rosenthal writes, and private equity funds are the same as other businesses, in that they deploy capital, labor, and other inputs to make their profits.
Some on the left are defining successful deficit reduction too modestly, Penner writes, threatening to leave future fiscal policy perilously constrained.
House Ways and Means Committee Chairman Dave Camp's investment tax plan implicitly challenges our most basic and firmly held beliefs about why we tax investment gains the way we do, Sanchirico writes.
The current taxation of derivatives is complicated and inconsistent, Rosenthal writes. Investors often use these tax differences to manipulate the character, timing, or source of their income to reduce their tax liability, he adds.
The IRS marks Earned Income Tax Awareness Day Friday. Given the value of the Earned Income Tax Credit, it is important to remind low-income families that it is a big reason why they should file a tax return, Maag writes.
The newly enacted American Taxpayer Relief Act of 2012 will permanently protect millions of taxpayers from having to pay the alternative minimum tax without Congress having to approve a temporary patch every year or so, Williams writes.
Japan's latest attempt at fiscal stimulus is heavy on infrastructure spending and disaster preparedness, and includes $117 billion in central government spending, Harris writes.
A proposal to replace income tax with a higher sales tax in Louisiana could lower compliance and administrative burdens, Harris writes. But it’s not worth asking low-income households to shoulder such a large share of the burden to achieve such a small statewide gain, he adds.
The 'fiscal cliff' deal means some states will lose revenue they were counting on from scheduled changes in the federal estate tax that won’t happen, Francis writes.
The "fiscal cliff" deal's phaseout of itemized deductions is really a sneaky way to raise marginal income tax rates and creates an economic incentive to give to charities, Burman writes.
The current US corporate income tax in effect imposes a fee on companies that are publicly traded. The tax is neither efficient nor progressive.
The fiscal cliff debate thus far leaves the most vulnerable families quite close to the edge, Maag writes.
Somehow we must find ways to gain control over spending on Medicare and Medicaid, Penner writes.
President Dwight Eisenhower truly believed that budgets should be balanced, and his 1960 budget incorporated severe spending restraint and only minor tax increases, Penner writes.