Daily Policy Digest
Tax and Spending Issues
|Would Lifting the Taxable Earnings Cap Make Social Security More Solvent?
The annual Social Security Trustees report was quietly released in June, but it looked bleak. The Social Security program (including retirement benefits, Disability and Supplemental Security Income) is facing an $11.4 trillion unfunded liability over the next 75 years. The liability increases to $32 trillion into the indefinite future, writes NCPA Senior Fellow Pam Villarreal...
|In Defense of High Frequency Trading
Washington recently put Wall Street back into its crosshairs when Representative Peter DeFazio (D-Ore.) introduced a bill to levy a 0.03 percent tax on transactions involving stocks, bonds and derivatives. His goal is to reduce "speculative financial trading" and to "curb near instantaneous high-volume trades that create instability in the stock market and in our national economy." Democratic presidential candidate Hillary Clinton advocates taxing high-volume or High Frequency Trading (HFT). This market activity has been under scrutiny since the Great Recession, and especially since the "Flash Crash" of 2010; but, is high frequency trading really to blame for market crashes? writes NCPA Research Associate John McDonald...
|Donald Trump's Tax Plan under the NCPA's Model of the U.S. Economy
Presidential candidate Donald Trump's revised tax plan (Trump 2.0) would increase private sector jobs by 3 million in 2017 alone, writes NCPA Senior Fellow Pamela Villarreal...
|Four Reasons to Abolish the Social Security Benefits Tax
The Social Security benefits tax is perhaps the most bizarre tax on the books. In particular, it penalizes moderate-income seniors who wish to supplement their Social Security benefits, writes NCPA Senior Fellow Pam Villarreal...
|Hillary's Economic Plan Will Cost Americans Jobs and Income
Several weeks ago, presidential candidate Hillary Clinton spoke to an audience in Warren, Michigan laying out her plans for the economy should she become president. She asked four questions of her audience, of which the first was: "Which candidate has a real plan to create good-paying jobs?" Evidently, not Hillary Clinton, writes NCPA Senior Fellow Pam Villarreal...
|Clinton's Tax Plan Won't Just Hurt High Income Earners
The distributional effects of Hillary Clinton's proposed tax plan will negatively affect even the lowest income earners, according to a new NCPA/Beacon Hill Institute analysis...
|Hillary's Tax Plan Will Cost Everybody, Not Just the Rich
Presidential candidate Hillary Clinton has proposed a number of changes to the income tax code, targeted mainly at high-income earners. The tax changes would have little impact on 90 percent of the population in terms of tax liability. However, households in the top ten percent of the income distribution, who currently pay 53 percent of all federal taxes, would pay 80 percent of the additional tax collected, according to an NCPA analysis...
|The Economic Effects of the Clinton Tax Proposal
Compared with other presidential election year cycles, the 2016 campaign takes place in a period of perplexingly slow economic growth. Secretary Hillary Clinton's tax proposal, the center of her campaign's fiscal policy, stresses fairness. To reach "broadly shared prosperity," in this slow-growth environment, the Clinton tax proposals seek to promote growth and equity by shifting the tax burden to high-income taxpayers, writes NCPA Senior Fellow and Beacon Hill Institute Executive Director David Tuerck...
|Hillary Clinton's Tax Plan under the NCPA's Model of the U.S. Economy
Under Hillary Clinton's tax plan, the economy will perform worse than the Congressional Budget Office estimates, according to NCPA Senior Fellow Pamela Villarreal...
|Taxing Carried Interest
Over the past several years, there has been much debate about how to tax the compensation of the managers of private equity, venture capital and hedge funds. The issue is important because these funds provide capital for businesses at various stages of development or seek to minimize risks for investors, and raising taxes on these funds would reduce the rate of return to fund investors, writes NCPA Research Associate John White.