Taxes

The Marriage Penalty

A marriage penalty results when a married couple pay more taxes by filing jointly than they would pay if each spouse could file as a single person. A couple face the marriage penalty only when both sp…

The 1997 Budget Deal - What It Means to Taxpayers

The Taxpayer Relief Act of 1997 is important more as a political statement than for its economic impact. As the first major tax cut since 1981, it marks the end of the paralysis in fiscal policy that…

Can the IRS Be Reformed?

Since ancient times, people have feared and suffered at the hands of tax collectors. The ancient writer Lactantius tells us that Roman tax collectors would always double the tax when they were sent to…

The Case for Abolishing Death Taxes

The estate tax is a bad tax. It raises little revenue. It does not redistribute wealth. It imposes large costs on the economy. And it is complicated and unfair. It should be abolished.

Why Treasury's Numbers Don't Add Up

One of the most important factors in evaluating tax legislation is the distributional impact of the tax changes. The Treasury Department produces tables showing the effects of tax cuts and tax increas…

Will a Cigarette Tax Increase Really Help Uninsured Children?

Senators Orrin Hatch and Ted Kennedy have joined forces to establish a new government program to finance children's health insurance. They propose to fund the program by increasing federal cigarette…

Should We Abolish the Estate Tax?

While the estate and gift tax is insignificant in terms of federal revenue, it is quite significant economically. It wastes resources. It discourages work, saving and investment. And it does virtually…

The Economic Effects of the Dole Tax Plan

This study examines the economic effects of the Dole plan using a computable general equilibrium (CGE) model, an economic model that has been published in several peer-reviewed journals.