Taxes

The High Marginal Cost of the Estate Tax

The estate tax is not yet dead, by a long shot. Federal taxes on estates fell as a result of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). In fact, the estate tax will even d…

Estate Tax Myths

Congress is facing a tax deadline. Under legislation passed in 2001, the federal estate tax is being phased out: The tax rate is falling and the value of the property of the deceased that is exempted…

Soaking the Rich and Drenching Small Business

As soon as 2010, small businesses could face three simultaneous tax hikes that would raise their marginal tax rate as high as 66.9 percent. Democrats in Congress plan to raise taxes on top earners by…

The New Federal Tobacco Tax: Who Loses?

The recent expansion of the State Children's Health Insurance Program (S-CHIP) was funded by an increase in federal excise taxes on tobacco products. Congress increased the federal tax on cigarettes b…

Not-So-Sweet Excise Taxes

Some members of Congress want to raise excise taxes to pay for health care reform and energy technology development.  Federal excises on tobacco and alcohol are often called sin taxes; others designed…

How Tax Relief Can Stimulate Economic Growth

Congress is debating an economic stimulus package that would substantially increase federal spending, but may not speed recovery from the current recession.  The Congressional Budget Office estimates…

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…

Optimal Taxation, Economic Growth and Income Inequality in the United States

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…