Tax Policy & Budget

The COVID-19 pandemic poses an existential threat to small businesses, with more than 400,000 lost since the crisis began. Many small businesses are financially fragile and not equipped to weather a prolonged period of substantially reduced revenues. In this proposal, Steven Hamilton of The George Washington University calls for a significant expansion of refundable tax credits to help support small businesses through this crisis.

Taxation is an enduring focus of economic policy debates. This book presents a series of policy options, authored by leading tax experts and backed by rigorous analysis, to increase federal revenue in ways that are both efficient and equitable. The policies include better tax enforcement, improved, corporate taxation, increased taxation of wealth, and taxes on some transactions. 

How the government raises tax revenue has critical implications for economic prosperity. Moss, Nunn, and Shambaugh provide a framework for assessing various tax policies and their implications for growth and inequality.

One driver of high inequality and low intergenerational mobility is the inefficient and inequitable way that inheritances are currently taxed. In this proposal, Lily Batchelder describes reforms that would raise revenue and put inherited income on a more level playing field with income earned from work.  

The United States has high levels of income and wealth inequality, in part because of shortcomings in how we tax concentrated income and wealth. To raise revenue and more effectively tax income from wealth, Greg Leiserson explores several key design considerations and discusses four potential approaches to wealth taxation. 

The federal government requires more funding to sustain economic growth and opportunity, and raising such funds may require new sources of tax revenue. In this proposal, Antonio Weiss and Laura Kawano propose a financial transaction tax that would raise substantial revenue (largely from high earners) without hindering market functioning.