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Goldman Sachs Bolsters Case Against Renewing “Bonus Depreciation” Tax Break

March 11, 2014

The business tax break called “bonus depreciation,” enacted in 2008 as a temporary stimulus measure, expired in December, and we’ve cited findings from the Congressional Budget Office, Moody’s Analytics, and others showing that it hasn’t been a particularly cost-effective way to boost the economy...

Camp Roadmap to Paying for Extenders

March 5, 2014

House Ways and Means Chairman Dave Camp’s tax reform plan hasn’t generated a groundswell of support for comprehensive tax reform this year, but it offers two important lessons for the tax issue that Congress likely will address: the “tax extenders,” several dozen lapsed tax breaks (mostly for corporations) that Congress perennially extends.  First, it embraces the principle that...

Obama Budget Would Extend EITC's Pro-Work Success to Childless Workers

March 4, 2014

Update, March 4:  We’ve just updated our in-depth analysis of recent proposals to strengthen the EITC for childless workers.

Building on calls from both sides of the aisle to expand help to low-income childless workers — the sole...

Camp Plan’s Tax Expenditure Cap Marks a Step Forward

February 28, 2014

We’ve criticized its harsh cuts to many working-poor families and likely adverse long-term fiscal effects, but House Ways and Means Chairman Dave...

Four Things to Look for in Chairman Camp’s Tax Reform Plan

February 25, 2014

Four questions are particularly important in evaluating the tax reform proposal that House Ways and Means Committee Chairman Dave Camp (R-MI) is expected to issue tomorrow.

1.    Does it raise needed revenue?

 
All tax reform plans raise revenue by scaling back tax expenditures (deductions, exemptions, and other preferences).  A key litmus test for the Camp plan is...

President Obama Calls to Expand EITC for Childless Workers, Joining Growing Bipartisan Consensus

January 29, 2014

With President Obama calling for expanding the Earned Income Tax Credit (EITC) for childless workers, as he did in last night’s State of the Union speech, Washington is now well-positioned to take this important step.

Support for such a step was already growing on both sides of the aisle, as we’ve recently ...

A Bipartisan Call to Boost the EITC and Cut Poverty

January 24, 2014

A number of leading liberal lawmakers and policy analysts have long advocated for a stronger Earned Income Tax Credit (EITC) to better assist childless workers — and support for such a step is now growing among conservatives as well, as we explain in our new commentary.

For instance, former George W....

Time to Let “Bonus Depreciation” Expire Permanently

January 13, 2014

One of the first steps by policymakers to stimulate the economy during the Great Recession was to allow businesses to take bigger tax deductions for certain new investments.  Since enacting this temporary provision — often called “bonus depreciation” — in 2008, they have regularly extended it (albeit at a less generous rate since 2012).

Bonus depreciation expired at the end of last year...

Paying for Jobless Benefits But Not “Tax Extenders” Has It Backwards

January 13, 2014

As Congress debates whether to extend expired federal unemployment insurance (UI) benefits, the issue of offsetting its costs has become a flash point.  At the same time, members of both parties are pushing to extend several dozen tax breaks that expired at year-end (mostly for corporations), with little concern about whether they are paid for.  That’s backwards.

The...

Congress Should Pay for Any Last-Minute “Tax Extender” Package

December 18, 2013

Politico reports this afternoon that the Senate may try to pass a package of “tax extenders” (targeted tax breaks set to expire at the end of the year) before they leave town for the holidays.  This graph shows why policymakers should fully pay for any such package.

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Paying for the “extenders” that Congress continues would have...

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