Taxes

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…

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 B…

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 ra…

Tax Code Became More Progressive after the Bush Tax Cuts

Critics complain that the 2001 and 2003 Bush tax cuts gave the greatest tax relief to the wealthiest taxpayers. However, every major tax bill over the past 15 years — both Republican and Democrat — ha…

The Bush Capital Gains Tax Cut after Four Years: More Growth, More Investment, More Revenues

In May 2003, President George W. Bush signed into law his investment tax cut. This package included accelerated reductions in income tax rates, a cut in the dividend tax from 39.6 percent to 15 percen…

The Coming Tax Tsunami

Over the next 25 years American taxpayers will face a fiscal tsunami.  The first of the baby boomers will be eligible for early retirement beginning next year, and will be eligible for Medicare in 201…

The Surtax: Worse Than the Alternative Minimum Tax

The individual alternative minimum tax (AMT) was originally designed to tax wealthy households who paid little income tax due to deductions and credits they claimed.  However, today's AMT is hitting m…