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Distribution Estimates Critical to Tax Reform Efforts

May 16, 2013

Rep. Kevin Brady, who chairs the Joint Economic Committee, argued in the Wall Street Journal recently that the distribution estimates which the Joint Committee on Taxation (JCT) and the Tax Policy Center (TPC) produce on how tax proposals would affect different income groups have “serious limitations.”  Brady essentially implied such estimates should be downplayed or ignored in...

What You Need to Know About International Tax Reform Options

May 9, 2013

The Senate Finance Committee will release the fifth of its tax reform option papers later today, this one on international taxation, Tax Notes reports.  Here’s why that’s important.

Among its options the committee will likely list is a move toward a “territorial” tax...

New Study from Treasury Analysts Highlights Risk of Corporate Tax Reform Trap

May 7, 2013

We explained recently that corporate tax reform could become a trap if policymakers start by setting a tax rate so low that they have trouble scaling back deductions and other preferences enough to offset the costs.  If so, that reform not only could fail the...

Debating Foreign Tax Havens

April 12, 2013

The New York Times’ latest “Room for Debate” feature asks whether secret overseas tax havens are a “Global Tax Dodge or Economic Boon.”


The Tax Code’s Foreign Tilt

March 28, 2013

A new Washington Post analysis of how the tax code encourages multinational corporations to shift investments and U.S.-earned profits to foreign tax havens — that is, very low-tax...

The Ryan Budget’s Skewed Tax Cuts

March 20, 2013

We’ve shown that the $5 trillion in non-defense program cuts in House Budget Committee Chairman Paul Ryan’s new budget are heavily weighted toward low-income programs.  At the same time, based on the latest estimates from the Urban-Brookings Tax Policy Center (TPC), we now...

Both Sides Have Offered Higher Revenues Than Those in Fiscal Cliff Deal

February 22, 2013

“Without new revenues, safe and sane deficit reduction is impossible,” the New York Times asserts today.  We agree.

To date, spending cuts have accounted for the bulk of the policy savings enacted to shrink deficits.  On the spending side, Congress has enacted...

Growing Tax Avoidance by Multinationals Undermines Competition, OECD Warns

February 15, 2013

Multinational corporations are becoming more aggressive at avoiding taxes through techniques like shifting profits overseas, according to a new report from the Organisation for Economic Co-operation and Development (OECD), a group of 36 mostly developed countries including the United States.  U.S. policymakers should heed that warning as they...

Even a Less Than “Pure” Territorial Tax System Carries Serious Risks

February 1, 2013

A White House official told Politico yesterday that the President doesn’t support a “pure” territorial tax system, under which U.S.-based multinational corporations would face a zero or very low tax rate on their foreign profits.  That’s good news — but even a less than “pure” territorial system carries serious risks.

As our...

Switching to “Territorial” Tax System Would Carry Serious Risks

January 31, 2013

Adopting a so-called “territorial” tax system, as some multinational corporations are lobbying Congress to do (see today’s press release from the Business Roundtable), would create greater tax incentives for multinationals to invest and move profits overseas rather than in the United...