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Claims About Economic Downside of Ending High-End Tax Cuts Don’t Hold Up

November 12, 2012

House Ways and Means Republicans and others have cited a report — sponsored by various business interests and produced by the accounting firm Ernst & Young — claiming that letting the high-income Bush tax cuts expire would shrink employment by 0.5 percent over ten years, which the report says translates...

Why 1986-Style Tax Reform Is Obsolete

November 9, 2012

Speaker John Boehner (R-OH) this week touted the 1986 tax reform law as a model for current deficit-reduction efforts.  But, as we’ve explained, 1986-style tax reform doesn’t make sense today, given the nation’s long-term budget problems:...

10 Myths About the Estate Tax

November 5, 2012

One of the lesser-known tax breaks that would expire at year-end under current law is a 2010 cut in the estate tax, which had already shrunk considerably between 2001 and 2009 due to President Bush’s 2001 tax cuts.  With policymakers expected to consider what to do about the tax in the coming weeks, we’ve updated a paper that...

Payroll Tax Cut Should Stay on the Table

October 22, 2012

10-16-12tax.jpgIn the C-SPAN interview we mentioned earlier today, Rep. Chris Van Hollen (D-MD) also said that Congress should consider extending the payroll tax cut:  “I don’t...

Few Wealthy Winners, Many Moderate-Income Losers from Tax-Extension Proposal

October 15, 2012

Republican leaders in Congress have called for extending a 2010 cut in the estate tax on roughly 7,000 multi-million-dollar estates.  But their proposals, one of which the House passed in August, wouldn’t extend a piece of the same 2010 legislation that strengthened the Earned Income Tax Credit (EITC) and Child Tax Credit for 13 million working families with moderate incomes.


The Myth That Low Capital Gains Rates Are Very Important to the Economy

September 20, 2012

Testifying today before a joint House-Senate hearing on the tax treatment of capital gains, tax policy expert Leonard Burman said, “The heated rhetoric notwithstanding, there is no obvious relationship between tax rates on capital gains and economic growth,” as this chart shows.


New Study: No Evidence That High-End Tax Cuts Help the Economy

September 19, 2012

Many policymakers cite as fact that cuts in the top income and capital gains tax rates spur much greater economic growth and that increases in those tax rates significantly hurt growth.  A new Congressional Research Service (CRS) report suggests, however, that such easy assumptions are highly problematic.

The report found no statistically significant correlation, all the way...

Benefits of Tax Breaks for Capital Gains and Dividends Don’t Justify the Costs

August 17, 2012

The New York Times “Room for Debate” feature takes a closer look this week at House Budget Chairman Paul Ryan’s call for an end to taxes on capital gains, interest, and dividends in his Roadmap for America’s...

“Tax Reform” Principles Before the House Are a Big Step Backward

July 31, 2012

The House is scheduled to vote tomorrow on a set of requirements for tax reform that could expand deficits and shift tax burdens from high-income to low- and moderate-income taxpayers, as our new paper explains.

Our paper details the severe problems with the House bill — namely, that it would:

  • fail to
  • ...

Bush Tax Cuts Have Provided Large Benefits to Wealthiest Americans

July 31, 2012

As the House prepares to vote this week on extending President Bush’s tax cuts, the debate about whether to continue those cuts for the wealthiest taxpayers goes on.

Tax Policy Center figures show just how much the Bush tax cuts have benefited people at the top.  As we explain in our...