News
CNN Money | Bye, bye tax breaks. Hello lower rates
President Obama on Wednesday officially threw his weight behind an idea to revamp the way Americans currently pay their individual tax bills, getting rid of popular breaks to lower all income brackets.
Fiscal Times | What's Rich? Down and Out on $250,000 a Year
Once again, the president has declared that a couple making $250,000 a year is wealthy and should pay a higher tax rate. In his deficit speech Wednesday, he said, "At a time when the tax burden on the wealthy is at its lowest level in half a century, the most fortunate among us can afford to pay a little more. I don't need another tax cut. Warren Buffett doesn't need another tax cut."
Politico | Polls: Most believe taxes are fair
As Tax Day approaches, most Americans say they think the taxes they pay are fair, though they’d like the government to cut spending and not raise taxes to combat the ballooning budget deficit, two new polls suggest.
Econ Comments
RCM | The U.S. Faces a Growing Tax and Debt Bomb
We thought tax reform meant lowering rates and broadening the base by eliminating or cutting back on various deductions, credits, and loopholes. That's what the Bowles-Simpson commission proposed. That's what Paul Ryan and David Camp are working on. And that's the pro-growth model.
AEI | What's Rich? Down and Out on $250,000 a Year
President Obama's plan recycles two of his longstanding tax proposals, the expiration of the Bush tax cuts for high-income households and a limitation on itemized deductions claimed by those households. But the plan adds a new element by calling for additional curtailment of tax preferences to further broaden the income tax base.
AEI | The Tax Code’s Burdens on Families and Individuals
Testimony before the House Ways and Means Committee.
Cato Institute | Obama's Soak-the-Rich Tax Hikes Won't Work
President Obama's response to congressional efforts to curb runaway federal spending is to emphasize, once again, his resolve to greatly increase tax rates on married couples whose joint incomes are above $250,000. This insistent desire to raise taxes — which he repeated in a speech yesterday while complaining about "trillions of dollars in ... tax cuts that went to every millionaire and billionaire in the country" — is a distraction. It won't solve our nation's fiscal problem.
USA Today | Opposing view: We don't need tax increases
Adm. Mike Mullen, the chairman of the Joint Chiefs of Staff, warned that the greatest threat facing our nation is our debt. To get out of this crisis we will need a serious, responsible budget that cuts back on bloated federal spending, which now controls nearly 25% of our entire economy.
WSJ | Obama's Soak-the-Rich Tax Hikes Won't Work
Income tax revenues have been remarkably stable at 8% of GDP, regardless of tax rates. The way to increase revenue is to grow the economy.
Blogs
Mercatus Center: Neighborhood Effects | Is There a Bad Way to Cut Taxes?
Good tax policy should strive for horizontal equity, meaning that similarly-situated taxpayers should face the same tax rate. Taxes that fail this test are unfair.
NRO: The Corner | Not a Victory for Taxpayers
Reading what Dean Baker and Katrina vanden Heuvel have to say about the budget deal in the Wall Street Journal, one would think that $1 trillion was trimmed from the budget last Friday night.
Cato@Liberty | Obama’s Tax Increase Trigger: Punishing Taxpayers with Automatic Tax Hikes When Politicians Overspend
Responding to widespread criticism of his AWOL status on the budget fight, President Obama today unveiled a fiscal plan. It already is being criticized for its class warfare approach to tax policy, but the most disturbing feature may be a provision that punishes the American people with higher taxes if politicians overspend
