Who Will Pay for Hillary Clinton’s Tax-Code Social Engineering?

Hillary Clinton wants to double the child tax credit for children under 5 and increase the refundability of the credit for more low-income households. Her proposal will further exacerbate the tax disparity between childless households and families with young children. And, by adding substantially to the federal deficit, the policy will shift the cost of raising today’s children onto future generations.

Broaden the Base — A Tax Reform Visualizer

To broaden the tax base, lawmakers will need to do more than close obscure tax loopholes. They will need to limit itemized deductions. These tax breaks costabout $176 billion in 2016 or enough to finance a nearly 13% tax cut for every individual income tax bracket. And they add significant complexity to the tax code.

MGA’s Alex Brill Serves as a Panelist at Bipartisan Policy Center’s “Global Competitiveness in the Age of Political Populism”

At an event on promoting economic growth amid a populist backlash, Alex Brill discussed the impact of the corporate tax on workers: “Politicians have used the tax policy debate in campaigns for forever, and they generally use tax policy ideas in a very direct way: ‘My tax plan will affect your tax bill this much — directly.’

Bernie Sanders’ State Wants to Unlearn the Lesson of Competition

On July 1, the state of Vermont is set to impose a $1,000 per day per product fine on any food manufacturer who fails to disclose on the product label if any ingredients contain genetically modified organisms (GMOs). The effect of the new law will be to reduce choices for consumers, limit supply, and increase food prices. And these consequences will be felt far beyond the tiny state’s borders.

MGA’s Alex Brill Serves as a Panelist at AEI’s “E-Cigarettes and Public Health: What’s Next After the FDA Rule?”

In an event following the release of FDA’s May 2016 “deeming rule,” which applied tobacco regulations to e-cigarettes, Alex Brill examined Congressional aspects of public policy related to the deeming rule and to e-cigarettes more broadly. Specifically, he looked at what Congress intends to do about e-cigarettes, focusing on three questions: First, what are congressional attitudes about the deeming rule and e-cigarette regulation generally? Second, is it a partisan issue? And third, looking beyond the deeming rule, how will Congress affect e-cigarette use more broadly in the future? “I think that the next battle that Congress will look to tackle with respect to e-cig products is the tax question,” said Brill.

Obama’s Wall Is Bad Too

Donald Trump’s proposal to build a wall between the United States and Mexico has been widely criticized. But the Obama administration is building its own wall around the United States. The Obama wall is built of rules that inhibit U.S. firms from pursuing inversions to escape the punishingly high US corporate tax rate. Both walls will harm Americans.

S is for Savings: Pro-Growth Benefits of Employee-Owned S Corporations

S ESOPs, which are defined contribution retirement plans that allow employees to become owners, are increasingly popular in the US…. S ESOPs exist across a wide spectrum of industries and include a meaningful number of US employees. As the US seeks to rebound from a period of tepid productivity growth, tools such as S ESOPs can improve worker commitment, reduce worker turnover, and lower production costs.

The Search for the Best Middle-Class Tax Cut

“Using…open-source models, Brill found that doubling the standard deduction and expanding the 10 percent rate would each result in a tax cut for about 75 million middle-class Americans. Expanding the 15 percent rate would give about 30 million of them a tax cut. That’s a big gap. Expanding the 15 percent bracket, though, would deliver more than twice the added economic growth of the other options, Brill’s models projected, by incentivizing far more additional work and investment in the economy.”

Understanding Middle-Class Tax Cuts

Middle-class tax relief has widespread support across the political spectrum, but the consequences of different strategies for achieving this goal are not well understood. The analysis finds that either doubling the standard deduction or expanding the brackets for the 10 or 15 percent tax rates have quite different effects both within the middle class and across the aggregate economy.