Federal Tax

The wealth tax has been pushed to the forefront of tax policy debates to combat wealth inequality. Presidential candidates Senator Elizabeth Warren (D-MA) and Senator Bernie Sanders (I-VT) both released proposals to tax the rich as part of their 2020 platforms. Senator Warren’s tax plan features a wealth tax rate of 2 percent each year
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Tonight’s Democratic Debate in Atlanta will see the remaining 10 candidates argue that they are the best choice as their party’s nominee in the 2020 presidential election. The candidates currently in the top 4 polling positions—former Vice President Joe Biden, Senators Elizabeth Warren (MA) and Bernie Sanders (I-VT), and South Bend Mayor Pete Buttigieg—have all
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On a yearly basis the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called “bracket creep,” when people are pushed into higher income tax brackets or have reduced value from credits and deductions due to inflation, instead of any increase in real income. The IRS used to
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As policymakers and presidential candidates consider proposals to enact a wealth tax on the wealthy, lost in the debates about tax avoidance, administrative challenges, and revenue projections is the impact on innovation and entrepreneurship. Contrary to the claims of wealth tax proponents, policymakers should consider the negative impact of wealth taxes on economic dynamism in
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A new report from the United Nations Conference on Trade and Development (UNCTAD) assesses the impact of the U.S.-imposed tariffs on imports from China, United States import prices, and United States imports from other countries. The findings provide empirical evidence for what economists generally expect to happen when bilateral tariffs are imposed: reduced trade, higher
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Last week, Representative Don Beyer (D-VA) and Senator Chris Van Hollen (D-MD) provided details on a proposed surtax on millionaires as part of an increased interest by policymakers to impose higher tax rates on high-income earners and the wealthy, with the goal of reducing economic inequality. The proposed surtax would levy a 10-percentage point surtax
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Throughout the 2020 presidential election cycle, many Democratic candidates have suggested raising tax rates on corporations and individuals to address income inequality in the United States. Senator Elizabeth Warren (D-MA) has proposed returning the corporate rate to 35 percent and imposing a wealth tax in her “Medicare for All” plan. Senator Bernie Sanders (I-VT) is
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A new proposal from Senator Elizabeth Warren (D-MA) to fund a $20.5 trillion increase in government health-care spending for a single-payer system overlooks how taxes interact and how they affect economic incentives. Her plan would create or increase many different taxes, but the proposal does not account for interactions across the different tax types. In
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Last week, Senator Ron Wyden (D-OR) introduced the “Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success” (PROGRESS) Act, which contains two new tax credits intended to increase investment in smaller businesses and help them grow. However, the legislation may incentivize firms to remain below the tax credit eligibility threshold, make the tax
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Today, Democratic presidential candidate Sen. Elizabeth Warren (D-MA) released her Medicare for All plan, which includes several new sources of revenue to fund $20.5 trillion in additional government spending on health care between 2020 and 2029. Her revenue proposals fall under four categories: contributions to directly finance Medicare for All, business taxes, individual taxes, and
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The National Collegiate Athletic Association (NCAA) recently decided to allow student-athletes to profit from the use of their name, image, and likeness, though specifics remain to be settled. In light of that decision, Senator Richard Burr (R-NC) announced he would be introducing legislation to treat student-athletes’ scholarships like income. This would be an odd divergence
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As the debate continues over the distribution of wealth and taxes, and what to do about rising inequality, it is important to consider how different researchers are measuring inequality and the implications these different methods have for the results. A recently revised study, “U.S. Inequality and Fiscal Progressivity—An Intragenerational Accounting,” highlights this importance. The study
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In The Triumph of Injustice, a new book released by economists Emmanuel Saez and Gabriel Zucman, the authors argue for an overhaul of the American tax code that would make it more progressive, making the case for higher tax rates on high-earning taxpayers and a wealth tax on taxpayers with wealth above $50 million.  
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