Econ Comments & Analysis
Washington Times | Payroll-tax problem
The president’s payroll-tax holiday took effect at the beginning of 2011. It reduced the Social Security withholding rate to 4.2 percent from 6.2 percent, giving the typical family an extra $40 per paycheck, according to the administration. The rationale is that people will spend this money and, in turn, increase the demand for goods and services, requiring companies to ramp up production and create new jobs.
WSJ | The Heartland Tax Rebellion
Oklahoma Governor Mary Fallin is starting to feel surrounded. On her state's southern border, Texas has no income tax. Now two of its other neighbors, Missouri and Kansas, are considering plans to cut and eventually abolish their income taxes.
Bloomberg | Zandi Says Failure to Extend Payroll Tax Cuts Would Reduce U.S. GDP in ’12
Economic growth in the U.S. will be reduced by 0.7 percentage point in 2012 if both programs aren’t extended through year-end, Zandi said in remarks to be delivered to the Joint Economic Committee of Congress today. If the programs are extended, the world’s largest economy will expand by 2.6 percent, he said.
Politico | Payroll tax cut extension a mess in the making
House Ways and Means Committee Chairman Dave Camp’s private assessment of the payroll tax debate is pretty bleak
WSJ | A Fairness Quiz for the President
President Obama has frequently justified his policies—and judged their outcomes—in terms of equity, justice and fairness. That raises an obvious question: How does our existing system—and his own policy record—stack up according to those criteria?
Kauffman Foundation | Capital Gains Tax Exemption for Investments in Startups Would Help New Companies Cross the ‘Valley of Death’ Says Kauffman Report
Permanent exemption could spur $750 million in additional annual seed investment, supporting the high-growth startups that create jobs
Blogs
Heritage Foundation | CBO Once Again Proves Tax Hikes Unnecessary to Lower Deficit
According to the CBO’s “Alternative Fiscal Scenario,” tax receipts will match their historical average in 2017, when revenue will be 18 percent of gross domestic product (GDP). Receipts will continue growing after that.
The American | Un-biasing the tax code
One of the biggest arguments regarding current tax rates is that they are an prohibitively high impediment to small business growth and creation, which, in turn, creates an impediment to job creation and innovation.
Tax Foundation | Monday Map: Sales Tax Exemptions for Groceries
Today's Monday Map shows how each state's sales tax treats groceries.
