C. Eugene Steuerle's Blog: The Government We Deserve, page 4

Individuals Pay Very Little Individual Income Tax on Capital Income

This column first appeared on TaxVox. Most capital income earned never is taxed at the individual level, in part because assets are often not sold and their gains never subject to income tax, in part because capital income benefits from a long list of tax preferences, and in part because of outright evasion. In a […]

Indexing Capital Gains For Inflation Addresses A Real Problem But Ignores Existing Law

This column first appeared on TaxVox. The idea of indexing capital gains for inflation is getting a lot of attention these days. Larry Kudlow, who heads  the White House National Economic Council, has long suggested  Treasury should do this by regulation, while several members of Congress have introduced bills to make the change by modifying the tax code. […]

Beyond Wayfair, Can Nations and States Cooperate in Collecting Taxes?

The evolution of the modern economy is only increasing pressure on taxing jurisdictions to cooperate and for federal systems to adopt laws or treaties that encourage or even require such cooperation among sub-national governments.

Why Government Budget Estimates Are Often Wrong

This column first appeared on TaxVox. Government budget and tax analysts who estimate future federal revenues and spending are among the most talented people I know. They probably are a lot more accurate at what they do than typical academics or business consultants. However, their estimates frequently understate the true long-term costs of tax cuts […]

Measuring the “Charitability” of Hospitals: Putting Meat on the Bones of the Grassley-Hatch Request

On February 15, 2018, Senators Chuck Grassley (R-Iowa) and Orrin Hatch (R-Utah) requested specific information from the Internal Revenue Service (IRS) on its oversight activities of nonprofit hospitals. Skeptical about whether some or many nonprofit hospitals actually operate as charities, they sought evidence that they provide “community benefits.” To provide evidence well beyond what the […]

Challenges & Opportunities for Charities after the 2017 Tax Cuts and Jobs Act

Eugene Steuerle, Richard Fisher Chair at the Urban Institute and co-founder of the Urban-Brookings Tax Policy Center gave this presentation at the ABA Tax Meetings Exempt Organizations Committee luncheon in May 2018. A full transcript is available at taxpolicycenter.org. “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” […]

How Recent Tax Reform Sounds a Clarion Call for Real Reform of Homeownership Policy

This column first appeared on TaxVox. By roughly doubling the standard deduction and limiting the deduction from federal taxable income of state and local taxes (SALT), the Tax Cut and Jobs Act of 2017 (TCJA) significantly reduced the tax benefits of homeownership, especially for middle-income households. Not only does it cap the deductibility of state […]

How Late-in-Life Dads Like Donald Trump Are Eligible for a Social Security Bonus

There are hidden problems in the safety net, including extra cash for people who have kids late in life. Here are some of the most unfair examples, along with some simple ways to fix them.

Donald Lubick: Public Servant

This column first appeared on TaxVox. The Tax Policy Center is hosting its third annual Symposium in honor of Donald C. Lubick on Monday, April 9 at the Brookings Insitution. Given the chaos that defines tax policy these days, it seems like a good time to explain why we both honor Don and desperately need more leaders like him. […]

Pete Peterson and Our Chaotic National Debates

This column originally appeared on TaxVox. Each person’s death gives us a moment to pause and ask what lessons their lives offer for us. Here is a lesson from the life of Peter G. (Pete) Peterson, who died on March 20, 2018 at the age of 91: We could reduce our current political chaos by […]