Capping deductions would raise revenue in a highly progressive way but how much revenue and how progressive depend on the cap, Williams writes.
Romney has proposed about $5 trillion in specific, gross tax cuts over the next decade relative to current policy, most but not all of which would go to high-income taxpayers. He has also promised to offset a substantial portion of those cuts—presumably in the trillions of dollars—by reducing deductions and other tax breaks.
The marginal tax rate is crucial in making various personal economic decisions, Williams writes.
The 46 percent of Americans who don't pay federal income tax can be divided into those who have no taxable income and those who have enough tax breaks to wipe out their tax liability.
A new Urban Institute study finds that households with annual income under $35,000 may benefit from having their tax refunds paid directly to a prepaid card account.
Romney economic adviser Martin Feldstein tries to contradict the Tax Policy Center's findings that Mitt Romney's tax plan would raise taxes on the middle class. But he actually confirmed it to be true.
Limiting the tax exemption for municipal bonds is becoming a popular idea among conservatives looking for ways to slash the budget and finance tax rate cuts. But will it work?
CBO's 'gloom' scenario means pushing the economy off the 'fiscal cliff' into recession. But deficits would plunge. 'Doom' means no recession but dangerous levels of debt.
The Tax Policy Center's new marriage bonus and penalty calculator can tell you whether you will pay more or less income tax as a married couple.
One technique for high-frequency traders is to enter multiple fictitious trades for a stock and then cancel them. France now taxes those 'non-transactions.'
The Earned Income Tax Credit (EITC) is getting an overhaul. The plan can be a huge boost to low-income single parent families, but carries a severe penalty if that parent gets married. A new plan in place of the EITC would address the problem while expanding the benefits.
Weak government spending continues to hamper the economy, according to a recent study.
Higher education is a good investment, and getting kids through school should be a top priority. But how should the government pay for it?
Medicaid was on center stage last week when the Supreme Court ruled the government did not have the authority to pull federal Medicaid funds from states refusing to extend eligibility to low-income, non-elderly adults.
There is nothing inevitable about the glum estimate set forth in the Congressional Budget Office's latest fiscal policy snapshot. What if Congress retained the level of taxation set by current law, while collecting the money in a much smarter way?
State taxes and transfers can be an important, albeit complicated form of assistance for low-income families. A new interactive calculator aims to help guide families through the process, including the options when family income increases.
Like a movie franchise that keeps coming back, California's annual budget mess is the same story year after year.
If you think the Bush tax cuts should be extended—an idea most opponents of the millionaire tax support—revenues from a minimum tax rate on millionaires would increase by a much more significant $162 billion over the decade. And that’s hardly the chump change than the Buffett rule's critics imply.
The new rules for reporting capital gains is a laudable aim, but the IRS faces a number of challenges to make this initiative work.
Romney pays a much higher rate than the President, even though he makes far more money. Here's why.