Washington Wire

The Myth of Beneficial High Tax Rates

May 5, 2021|

The inequality narrative driving tax policy this year is built on three shaky foundations: (1) that the rich have captured all the economic gains in recent years, (2) that Americans support very high tax rates, and (3) that America thrived under much higher tax rates than are being considered today.  S-Corp addressed the first two fallacies (here and here).  A recent Senate Finance Committee hearing on how to make the tax code

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Talking Taxes in a Truck Episode 9 – Tax Foundation President Scott Hodge

April 28, 2021|

Scott Hodge, President of the Tax Foundation, joins to discuss details of the Biden administration’s latest tax proposal, the economic effects of policies being considered (spoiler alert: they’re not good), and his recent appearances before the Senate Finance and Budget committees. Scott also shares his predictions on the Washington Nationals’ prospects this year, and debates Brian on motorsports.

Our latest “Talking Taxes in a Truck” podcast was recorded on April 28, 2021, and runs 21 minutes

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Are the Pollsters Wrong on Taxes?

April 26, 2021|

Politico recently ran a story about the soul-searching taking place in the polling community, whose 2020 projections predicted a landslide victory for Joe Biden and an significant expansion of the Democratic majority in the House.

“Twenty-twenty was an ‘Oh, s—‘ moment for all of us,” said one pollster involved in the effort, who was granted anonymity to discuss the process candidly. “And I think that we all kinda quickly came to the point that we

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SALT Parity Promises Billions in Main Street Relief

April 23, 2021|

More good news on the SALT Parity front.  New York has become the 10th state to adopt our reform legislation while a similar bill is sitting on the desk of the Georgia Governor awaiting his signature, which would make 11.

Those states join Connecticut, Wisconsin, Oklahoma, Louisiana, Rhode Island, New Jersey, Maryland, Alabama, and Arkansas in passing SALT Parity, while a dozen others are actively considering similar bills. Illinois is new to this list,

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A Little Reality on the Tax Gap

April 20, 2021|

IRS Commissioner Charles Rettig made news last week when he endorsed a new tax gap estimate from, among others, French economist Gabriel Zucman.  We reviewed the Zucman paper here and found it typically wanting – questionable assumptions and methodologies leading to improbable conclusions.

That didn’t stop Rettig from endorsing the estimate, however.  Well, he sort of endorsed it.  Here’s what he actually said, according to Bloomberg:

Internal Revenue Service Commissioner Chuck Rettig told a Senate

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