Taxes

Tax Cuts and the Rich

From the harshness of tax policy debates in recent years, one might suppose that the tax burden had been shifted from the rich to the poor. In fact, major tax cuts in the 1980s did just the opposite.…

Are the Republican Tax Cuts Fair?

Six proposed tax cuts in the Contract With America are designed specifically to increase economic growth.  Republicans claim that these tax reductions will lead to more jobs, higher wages and a higher…

Dynamic Scoring: A Primer

Changes in tax rates affect how hard and long people work and how much they save and invest. But the official revenue-estimating arms of government ignore this fact in making their calculations.  They…

The Marriage Penalty

Many married couples pay more taxes than they would if they were unmarried. This penalty can amount to several thousand dollars per year even for moderate-income families. President Clinton's tax incr…

Taxing the Elderly

Social Security benefits were entirely free of taxes until 1983, when Congress voted to tax 50 percent of benefits above a certain income level. President Clinton raised this to 85 percent in 1993. Th…

Tax Reforms: The Need to Change Depreciation Rules

Our income tax system discriminates against long-term investments.  Under current rules, investments in short-lived assets are more attractive than investments in long-lived assets. In fact, the longe…

The Case for a Capital Gains Tax Cut

The 1986 Tax Reform Act increased the maximum tax rate on capital gains income from 20 percent to 28 percent. This 40 percent tax hike has reduced government revenues, discouraged entrepreneurship and…

The Armey Flat Tax

The Freedom and Fairness Restoration Act would scrap virtually all current deductions, credits, exclusions and exemptions, as well as the five current tax brackets. In their place, it would establish…