C. Eugene Steuerle's Blog: The Government We Deserve

Why Progressivity in Tax Policy Is Not A Simple Matter

Policymakers and even policy analysts often consider the progressivity of specific proposals independently from the broader systems in which they operate. Consequently, they often leave the public with a misleading impression of how those proposals affect various income groups. Here are four examples of how specific programs might appear to be regressive yet may not […]

How Existing Budgetary Commitments Could Affect President Biden’s Domestic Policy Goals

The COVID-19 pandemic and accompanying recession laid bare many of the needs of working families and children, as well as federal, state, and local governments’ historic inattention to public health needs and preventative health care. In 2020, Congress responded by enacting approximately $3.5 trillion in economic relief bills. So far this year, it has approved […]

Could Better Government Have Lowered Pandemic Deaths by 100,000 or Reduced Costs by a Trillion Dollars?

It never is easy for government to respond to crises, especially one as big and far-reaching as the COVID-19 pandemic. Yet, a better policymaking process might have saved tens of thousands of lives and massive amounts of money. While the media focus on big political fights, the key to policy success—especially in a crisis—is having […]

How Much Has the Pandemic Affected President-elect Biden’s Opportunity to Chart a New Course?

Largely as a consequence of the pandemic, trillions of dollars have been flowing out of the Treasury’s coffers. The Congressional Budget Office (CBO) projects the federal budget deficit for 2020 alone will exceed $3 trillion, three times higher than pre-pandemic estimates. Meanwhile, President-elect Joe Biden has suggested that trillions of dollars more should be spent […]

My Simple New Year’s Wish for 2021: Less Nastiness

At New Year’s I usually try to pass on a note of hope that goes beyond the policy issues I usually address. This year I’ve had a lot of trouble coming up with a message, watching as a rising tide of nastiness has been sucking the life out of the very soul of our nation. […]

Congress Could Fix the ACA’s Individual Mandate Without Waiting for the Supreme Court

In the coming months, the US Supreme Court will rule for the third time on the constitutionality of the individual mandate that is a central element to the 2010 Affordable Care Act (ACA). This case was brought by several Republican state attorneys general, who argued that because Congress effectively eliminated the tax-based mandate, the entire […]

What Trump’s Tax Returns Reveal About Wealth Inequality And Slower Economic Growth

The New York Times account of President Trump’s tax returns reveal far more than his personal ability to avoid taxes. They show how the tax law can make it easy for the very wealthy to avoid taxation. And they reveal more than deficiencies in the tax law. Bankruptcy laws allow wealthy investors to shift losses […]

COVID-19-Related Policies Can Better Boost the Economy By Targeting Less To Savers

Congress has responded to the COVID-19 pandemic-induced economic slowdown by putting hundreds of billions of dollars directly into people’s pockets. Much of this came from the Economic Stimulus Payments ($1,200 per adult/$500 per child) administered by the IRS and expanded unemployment benefits. The evidence so far suggests that many households are saving much of that money, along […]

The COVID-19 Crisis Reveals the Need to Let Eligible Workers and Retirees Take Partial Social Security Benefits

Workers often face uncertainty about their jobs, but not since the Great Depression have so many been unemployed or worried about becoming unemployed. Some have been laid off temporarily but don’t know if their job will come back. Others find themselves without a job and searching in a labor market with few openings. These problems hit older workers […]

The CARES Act Charitable Deduction For Non-Itemizers Was A Lost Opportunity To Help Beneficiaries Of Non-Profits

According to the Joint Committee on Taxation, Congress spent about $1.5 billion in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to create a one-year charitable deduction of $300 for the 90 percent of  taxpayers who claim the standard deduction. Unfortunately, little of this $1.5 billion will benefit the recipients of charitable services. At best, […]