Taxes

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…

Do Higher Cigarette Taxes Make Sense?

Higher cigarette taxes do help fund health care reform, but they will take most of the money from the families that can least afford it.

Should 85 Percent of Social Security Benefits Be Taxed?

President Clinton proposes to increase the tax on Social Security benefits. Although the administration calls this an "entitlement spending reduction," what it proposes is a tax that will fall primari…