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Errors Of Commission

The President’s Advisory Panel on Tax Reform is about to disgorge its recommendations. Early reports suggest that it will push for three general changes: Simplify the individual income tax by reducing or eliminating the Alternative Minimum Tax (AMT) and some deductions; Increase the exclusion of investment income from tax; Consolidate tax benefits for working families […]

Posted inSpecial Report

The Easy Money

The Internal Revenue Service estimates that some $350 billion in taxes owed to the federal government is evaded or otherwise unpaid every year. That sum, also known as the “tax gap,” nearly equals the current federal budget deficit. Of this $350 billion, enforcement efforts eventually recover about $43 billion — and much more could be […]

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Why Pay Down the Public Debt?

Y our taxonomist and my friend, Robert McIntyre, has offered us a lesson on the merits of paying down public debt [“In Praise of Debt Reduction,” September 11, 2000]. Everyone knows Bob’s work on tax policy is invaluable, but his class on fiscal policy is one I’d rather cut. Bob begins with the reasonable point […]

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How Do You Spell Relief?

Big tax cuts are in the offing. The high priests of fiscaldiscipline find their flocks deserting, egged on by President George W.Bush, the GOP, and the Janus-faced Federal Reserve Board chairman. Butwho will get the benefit? Critics of Bush’s tax-cut plan in both parties appear to be atsomething of a loss to propose alternatives that […]

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It Takes a Tax Credit to Raise a Child

W ith some creative expansion, the Earned Income Tax Credit (EITC) could all but end poverty among working-class families with children and help a lot of middle-class parents as well. The EITC is now this country’s second-largest means-tested program that aids the poor. (Medicaid is the largest.) It goes primarily to families that have children […]

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