The Housing Crash and Smart Growth
Most experts agree that relaxed lending practices, which allowed people to buy homes they could not afford, led to the creation of a housing-price bubble prior to 2007. The 2008 financial crisis …
Who Benefits from Mortgage Deductions?
The Tax Reform Act of 1986 ended personal deductions for interest on credit card debt and other types of loans, but continued the home mortgage interest deduction, a popular tax expenditure. Supporters …
Lifting Workers Out of Poverty: The Minimum Wage versus the Earned Income Tax Credit
San Francisco, Los Angeles, Seattle and New York State have all taken steps to establish a $15 an hour minimum wage. However, a $15 minimum wage will do far less to raise …
The Changing Price of Oil Relative to Gold
The collapse of crude oil prices in 2014 was a big surprise, but popular explanations quickly circulated. Most attributed the collapse to changes in supply and/or demand. It is true that a …
The Rand Paul Tax Plan
Senator Rand Paul’s (R-Ky.) plan for comprehensive tax reform is generally much better than the status quo, but some of its elements could be substantially improved to make it more pro-economic growth. Additionally, …
Opportunities for Small-and Medium-sized U.S. Businesses in the Transatlantic Trade and Investment Partnership
The Trade Promotion Authority (TPA) bill signed into law by President Obama on June 29, 2015, is expected to lead to a quick resolution of negotiations for both the controversial Trans-Pacific Partnership …
Do Unemployment Insurance Benefits Encourage Reemployment?
During the 2008 Recession, the Emergency Unemployment Compensation (EUC) program provided the long-term unemployed an unprecedented maximum 99 weeks of benefits. Some weeks of extended benefits were available to workers in all states, but workers in the states with the highest unemployment rates received the maximum weeks of benefits.
Innovative Teaching Methods Key to STEM Growth
It is a great time to be a Science, Technology, Engineering or Mathematics (STEM) major in Texas. Dallas made Forbes’ list of the top 10 cities for STEM jobs and has the second highest annual median wage growth for STEM workers, while Houston and Austin were named the top two metropolitan areas for STEM professionals in a Wallet Hub report.
What Is in the Lee-Rubio Tax Plan?
Senators Mike Lee (R-Utah) and Marco Rubio (R-Fla.) have released a blueprint for federal tax reform called the “Economic Growth and Family Fairness Tax Plan.”
New Congressional Budget Office Director Keith Hall and Dynamic Scoring
The appointment of Keith Hall as director of the Congressional Budget Office coincides with the adoption by Congress of a rule change that requires “dynamic scoring” of proposed tax law changes.
Obama's Proposed Capital Gains Tax Hike
Taxing the nonwage income of the wealthy is politically popular because it is assumed few people will be affected. President Obama’s 2016 budget proposes an increase in the capital gains tax to 28 percent for couples earning $500,000 or more.
MyRA or the Highway?
The Obama administration directed the Treasury Department to establish a program of individual retirement savings accounts known as “MyRAs” beginning January 2015. MyRA accounts allow workers to save via payroll deductions.
The Future of the American Coal Industry
Coal is abundant, reliable and affordable, and states that use it to generate at least half of their electricity pay up to 30 percent less for energy than states that depend on other energy sources.
Not All Income Tax-Free States Are Alike
All but seven states have a state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas and Wyoming. These states are typically thought of as having a tax advantage over states with an income tax.
The Trans-Pacific Partnership: Opportunities for International Trade and Internal Growth
The Trans-Pacific Partnership (TPP) offers an opportunity for the United States to increase trade with 11 other countries. Completing the agreement will create the largest free trade area, in terms of both goods and services, in which the United States participates.
A Hidden Cost of Common Core: Teacher Accountability
Bill Gates said that education reform is more difficult than eradicating polio, malaria or tuberculosis. He supports all of these causes, but the Common Core State Standards (CCSS) Initiative that he helped spearhead is coming under increasing criticism.
China’s “National Plan on New Urbanization”
Newly elected Prime Minister Li Keqiang has ordered implementation of the “National Plan on New Urbanization,” which aims to have over 60 percent of the entire population living in cities by 2020 and to initiate a new round of economic growth. [See the figure.] In 2013, China had 712 million people living in cities, with around 600 million still living in rural areas. The main aim of the urbanization plan is to coordinate development of cities and small towns, based on major city clusters, to accommodate 100 million new urban residents by 2020.
Calming Fears of Climate Change in South and Southeast Asia
Recent regional studies claim the Earth is beginning to feel the effects of climate change, especially South and Southeast Asia. Yet, thus far, climate change has had no discernible effect on these regions, and recent analyses indicate adaptation is the preferable strategy to deal with any effects that may occur in the future.
Pacific Alliance Looks East
After several failed attempts at regional integration, the countries of Chile, Colombia, Mexico and Peru formed the Pacific Alliance in 2011. The new coalition is focused on common economic objectives, including pursuing free market reforms and expanding trade with Asian markets.
Abolishing the Corporate Income Tax Could Be Good for Everyone
The U.S. corporate income tax produces little revenue — only 1.8 percent of gross domestic product (GDP), or about $288 billion in 2013. Yet the compliance, collection and avoidance costs of collecting this tax are huge.
How Social Security Reform Could Benefit Workers
Congress is once again considering changes to Social Security in an attempt to “save” the program. Social Security benefit payments have exceeded tax revenues since 2010; the funding deficit is growing and, barring reform, will continue to grow indefinitely. Higher tax revenues are necessary to fund benefits as they are currently calculated.
Is Disability Contributing to Women’s Declining Employment?
Women’s labor force participation rate (LFPR) — the percentage of individuals employed or looking for work — reached an all-time high of 60 percent in 1999, but since then has steadily declined to 57.2 percent in 2012.
The Growing Benefits of a Warmer World
Earth’s climate has changed many times throughout its history. During the last century and a half, average temperatures have risen modestly, though the warming trend has stalled for the past 16 years. Contrary to popular belief, climate change thus far has had positive effects, and the net benefits of warming are likely to be positive for the foreseeable future.
Popular Medicare Drug Plans Are under Assault
Nearly 39 million Medicare beneficiaries, including both seniors and the disabled, have subsidized drug coverage through the Medicare Modernization Act (MMA) of 2003. Of these, nearly 36 million individuals are enrolled in drug plans known as Medicare Part D. [See Figure I.]
Retiring Soon? Pay off the House First
In 2011, the first of 78 million baby boomers turned 65. By 2031, the last year of the boomer generation will reach their full retirement age (67). Many will consider moving to a less costly, low-tax state to reduce their living expenses.