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 fair provides a good example of why the third leg is just as unstable.
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 long.
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 need to set our egos aside. We need to get this right.”
That’s about where the answers end. The collaboration’s first public statement acknowledges that their industry “saw …
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, following yesterday’s unanimous vote in favor of S.B. 2531 in the state Senate. The map below shows the current status of SALT Parity legislation.
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 panel Tuesday that previous tallies of the tax gap — which came to a cumulative amount of about $441 billion for the three years through …