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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...

Republican Proposals to Extend Estate Tax Breaks Would Deliver Huge Cuts to Wealthy but End Credits for Lower-Income Americans

July 25, 2012

As I noted yesterday, Republican leaders in both the Senate and the House want to extend the lucrative estate-tax rules that policymakers included in compromise tax-cut legislation at the end of 2010 — but not the tax-credit improvements for working-poor and near-poor...

Scaring Seniors on Capital Gains

July 25, 2012

“Seniors . . . will be hurt the most” if policymakers let the tax rates on capital gains and dividends rise next year as scheduled, a Wall Street Journal op-ed today argues.  This is simply false.  The data clearly show that raising the rates would have little or no...

Proposals to Extend Estate Tax Favor Wealthy Over Lower- Income Working Families

July 24, 2012

The House and Senate Republican leaderships have each proposed tax packages that would extend for one year the lucrative estate-tax rules that were enacted as part of the compromise tax-cut legislation at the end of 2010.  Compared to President Obama’s proposal to reinstate the already generous 2009 estate-tax rules, the Republican leadership proposals would deliver an average of more than $1...

Why Cutting All Tax Rates Equally Produces Unequal Results

July 23, 2012

You might assume that cutting all income tax rates by the same percentage — as Governor Romney and others have proposed, and as key Senate Republicans endorsed last week as a key goal of tax reform...

Claims That Letting the High-Income Bush Tax Cuts Expire Would Harm Small Businesses Are Vastly Exaggerated

July 19, 2012

House Speaker John Boehner referred this week to the proposal to let President Bush’s tax cuts on income over $250,000 expire on schedule as a “small business tax hike” that would have “disastrous consequences.”

Neither part of that charge holds up, as we...