Publications -- Taxes

Oct 01, 2009

BA #678 – 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 from the tax is rising. The tax is scheduled to disappear in 2010, but it will return in 2011 at pre-2001 rates - up to 55 percent for estates valued in excess of $1 million. The Senate voted in April 2009 to reduce the rate of the revivified tax to 35 percent, but the House of Representatives has not acted.

Aug 06, 2009

BA #671 – 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 allowing some of the Bush tax cuts to expire. Draft legislation in the House of Representatives to overhaul the health care system contains two additional proposals that aim to soak the rich. However, these tax hikes will drench small businesses.

Aug 04, 2009

BA #670 – 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 by 61 cents per pack and raised the tax on other tobacco products, with the goal of equalizing the tax per pound of tobacco.

Jul 01, 2009

BA #663 – 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 to pay for specific government services, such as gas taxes that fund road building and maintenance, are often called user fees.

Jun 30, 2009

ST #322 – Fiscal Policy and Economic Recovery

The Obama administration is committed to using federal spending over the next few years in hopes of turning the economy around. It will be funded by continuous, massive budget deficits. Will deficit spending bring about economic recovery? Will a return to Keynesian economic policy bring us economic prosperity?

Mar 31, 2009

BA #650 – Six Steps to Paying Off the U.S. Government Debt

To counteract the recession that began in December 2007, Congress has passed foreclosure assistance, tax rebates, bank bailouts and $787 billion of stimulus.  This spending will result in massive federal budget deficits and increasing government debt - projected to rise to $23 trillion by 2019.  This amount of debt will hurt economic growth and burden future generations.

Mar 24, 2009

BA #648 – Mark-to-Market Accounting: Shooting Ourselves in the Foot

One of the main causes of the 2008 financial crisis and current recession was subprime mortgages, which are home loans to borrowers with low credit scores, little or no down payment and high levels of debt. These borrowers have a higher risk of defaulting on their loans and are usually charged higher interest rates.

Feb 10, 2009

BA #643 – Will the $800 Billion-Plus Stimulus Plan Bring Economic Recovery?

Banker greed and Wall Street are blamed, but government policies over the last 25 years are the root cause of the current financial crisis.

Feb 10, 2009

BA #641 – 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 that less than 40 percent of the proposed infrastructure spending in the stimulus bill will be spent within two years. 

Jan 19, 2009

BA #639 – Regulating Work in Confined Spaces

Since its inception in 1970, the federal Occupational Safety and Health Administration (OSHA) has been criticized for imposing large costs on businesses while producing only minimal improvements in workplace safety. OSHA is now required to show that the benefits of a proposed regulation outweigh the costs of complying with it. However, OSHA’s cost-benefit analysis is often flawed.