Publications -- Taxes

Sep 29, 2008

BA #633 – The Case for Corporate Income Tax Cuts

Globalization and capital mobility are increasing tax competition among countries.  Lower tax rates increase after-tax returns to capital, raising economic growth rates.  They can also make economies more attractive for foreign investment.  Furthermore, lower taxes on capital are generally associated with increased government tax revenues.

Sep 23, 2008

ST #316 – Optimal Taxation, Economic Growth and Income Inequality in the United State

Up to a point, government spending on public goods - such as national defense and protection of property - can raise the economic growth rate. However, as government spending rises, the tendency is to increase spending on nonproductive income transfers - such as subsidy and welfare programs. Research indicates that the high levels of taxation required to pay for such income transfers inhibit economic growth, whereas lower taxes can raise the rate of economic growth.

Sep 05, 2008

BA #629 – The John McCain Health Plan

If you listen only to presidential campaign rhetoric, you might conclude that Barack Obama has proposed bold new changes for our health care system, while John McCain is offering only small improvements. If so, you are in for a surprise. Most health policy analysts believe that Sen. McCain is proposing the most fundamental health care reform.

Sep 05, 2008

BA #628 – The Barack Obama Health Plan

Sen. Barack Obama has released only sketchy details about his health reform plan. The Commonwealth Fund has produced a very detailed plan, however, which it encourages readers to view as very similar to Obama's. Thus, one can assume the Commonwealth plan details apply where Obama has been vague.

Aug 29, 2008

BA #627 – Will Congress Penalize Marriage Again?

The marriage penalty is a quirk in the tax code that pushes married couples into a higher tax bracket than two unmarried single earners living together and earning the same combined income. The 2001 Bush tax cuts all but eliminated the marriage penalty by lowering tax rates and simplifying other elements of the tax code. However, these Bush tax cuts expire in 2010, and American families face steep marginal tax increases if Congress fails to renew them.

Aug 28, 2008

BA #626 – Crisis of the Uninsured: 2008

Despite claims that there is a health insurance crisis in the United States, the number of U.S. residents without health insurance actually fell in 2007, according to new Census Bureau numbers. The Census says the number of uninsured fell from 47.0 million to 45.7 million. Furthermore, the proportion of uninsured fell half a percentage-point, from 15.8 percent to 15.3 percent.

Aug 26, 2008

BA #625 – Double-Dipping Social Security

The current Social Security system allows individuals to claim reduced, early retirement benefits beginning at age 62.  Individuals who wait until the full retirement age to collect receive about 30 percent more in monthly benefits.  If they wait until age 70 to collect, their benefits will be about 60 percent larger than at age 62. So what choice should people make?

Apr 30, 2008

BA #616 – Social Security and Medicare Projections: 2008

The 2008 Social Security and Medicare Trustees Reports show the combined unfunded liability of these two programs has reached $101.7 trillion in today's dollars! That is more than seven times the size of the U.S. economy and 10 times the size of the outstanding national debt.

Apr 25, 2008

BA #615 – 401(k) Loans = Retirement Insecurity

The popularity of 401(k) plans has grown in recent years.  According to the Employee Benefits Research Institute, almost two-thirds of employers offer such plans and millions of employees now contribute to them.  These defined contribution plans allow workers to set aside part of their earnings in tax-deferred retirement accounts that are invested in stock and bond funds. 

Apr 15, 2008

ST #310 – Does it Pay to Work More?

Does it pay to work more hours in order to earn more income?  The answer depends on what one earns after taxes.  Virtually all American households are confronted with high to very high marginal tax rates when they increase the number of hours they work in the current year or in future years.