Taxes

Would a Capital Gains Tax Cut Increase or Reduce Government Revenue?

Last year the House passed a capital gains tax cut which subsequently died in the Senate.  The Joint Committee on Taxation (JCT) prediceted the bill would reduce federal revenues by about $60 billion…

Should Income Tax Rates For Wealthy Taxpayers Be Increased?

Lower personal income tax rates are Ronald Reagan's most significant legacy.  The highest rate was 70 percent in 1980.  Tax reform in 1981 reduced it to 50 percent and in 1986 to 28 percent that preva…

Should 85 Percent of Social Security Benefits Be Taxed?

The elderly pay income taxes on up to one-half of their Social Security benefits if their total income exceeds $25,000 (individual) or $32,000 (couples).  They pay taxes on 50 cents of benefits for ea…

Elderly Taxpayers And The Capital Gains Tax Debate

In order to correct the unfairness in the present tax code and encourage a higher national saving rate, we should index capital gains and other investment income for the effects of inflation, exempt c…

The Bush Savings Plan

Almost everyone agrees that the current method of taxing capital gains is harmful and unfair. Although personal income tax rates are inflation-indexed, there is no similar protection for people who ma…

Employee Benefits Law: The Case For Radical Reform

Each year Ametica "spends" $105 billion in tax deductions for employee benefits. The deductions cause the tax rates for all taxpayers to be higher than they otherwise would be. The justification is th…

Taxing Capital Gains

A capital gain is the difference between the sales price and the purchase price of an asset. Under current law, this gain is taxed at the same tax rate as ordinary income. Although the tax code is ind…

Taxing the Savings of Elderly Americans

An elderly widow living on a small Social Security benefit and $24,000 of income from interest, dividends, and a pension annuity faces a 1989 marginal tax rate of 48.3 percent. This extraordinarily hi…