Passing Over the "Fiscal Cliff" in Early 2013 Seems Increasingly Likely
Oct 10, 2012
While the outcome of the 2012 election will still ultimately decide next steps on the federal budget, a status-quo election that leaves Democrats in control of the presidency and Republicans in control of the House of Representatives seems likely to produce a budget stalemate that will last through the rest of the year and will trigger a "fiscal cliff" of spending cuts and tax increases in the new year.
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New OMB Watch Analysis Indicates that Current Low Estate Tax Rates Are Unaffordable, Should Be Rolled Back to Earlier Levels
Oct 2, 2012
WASHINGTON, Oct. 2, 2012—In a new analysis published today, OMB Watch makes the case for a strong, effective estate tax. The analysis lays out the importance of the tax in raising federal revenues and the ongoing budget debate and presents options for moving forward on the estate tax as the expiration of the Bush tax cuts looms at the end of the year.
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Tax Treatment of Capital Gains and Stock Trades Receives Attention as Congress Considers Tax Reform
Sep 25, 2012
On Sept. 20, the two congressional tax-writing committees held a joint hearing on the tax treatment of capital gains – gains on assets such as stocks, real estate, and other forms of wealth. The combined hearing – which brought together members of the Republican-controlled House Ways and Means Committee with members of the Democratically controlled Senate Finance Committee – demonstrated the commitment of both parties to address tax reform issues soon after the elections. Such reforms may come as part of a larger budget package intended to prevent the federal government from going over a "fiscal cliff" on Jan. 2, when a host of Bush era-tax cuts are set to expire and across-the-board spending cuts required by the 2011 Budget Control Act will go into effect.
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Inheritance Tax Renewal to Be Part of "Fiscal Cliff" Discussions
Sep 11, 2012
With the federal budget on the precipice of a "fiscal cliff" of pending budget cuts and tax increases that could take place starting Jan. 2 and tip the economy into recession, many budget watchers are waiting on the outcome of this year's elections to determine how to proceed. One issue up for discussion is the renewal of the inheritance tax (also known as the estate tax).
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Automatic Defense Cuts No Threat to National Security
Aug 14, 2012
Unless Congress acts to undo the $110 billion in automatic, across-the-board spending cuts scheduled to take effect early next year, most federal programs will be cut by about eight percent. These cuts are the unfortunate product of crisis budgeting and will have deleterious impacts on many Americans, but harm to national defense won't be one of them.
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Student Loan Interest "Fix" Not a Solution to Longer-Term Problems
Jul 10, 2012
Just before they left town for the July 4th break, members of Congress finally voted to prevent a doubling of student loan interest rates for one year with mere hours to spare. Unfortunately, they paid for it by reducing other educational programs. If we want an educated workforce in the future, we need more permanent fixes to make college affordable for Americans.
read in fullPolicy Riders: Bringing Transparency to a Shadowy Legislative Process
May 30, 2012
Schoolhouse Rock was only partly correct: getting a bill through Congress is just one way to turn proposals into law. Another way to write your policy demands into law is to hide them in the funding bills Congress passes every year to keep the government running. These “policy riders” in appropriations bills are temporary, but they establish new policies just like normal laws. Their use effectively shuts the public out of important policy discussions, and they undermine the openness of the legislative process. To remedy this practice, Congress can take some lessons learned from its reforms of the earmarking process.
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Student Loan Interest Fight Highlights Competing Values
May 1, 2012
According to a recent study by the Pew Center on the States, Americans believe access to a quality education is the most important way the government can help people get ahead. Next year, reaching that goal could become more difficult. With the federal student loan interest rate set to double to 6.8 percent, college could become much more expensive for millions of students. Both parties in Congress have said they want to keep the lower rate, but they are far apart on how to find the $6 billion annually to pay for the loan subsidies.
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Cutting Costs and Courting Contamination: What Food Safety Budget Cuts Mean for Public Safety
Apr 17, 2012
The Food Safety and Inspection Service (FSIS), the federal regulator of meat, poultry, and egg products, faces resource limitations that make it more difficult for the agency to ensure the safety of the food supply. New plans to cut costs could have severe consequences for public health and safety.
read in fullBuffett Rule Targets Capital Gains
Apr 17, 2012
On April 16, the Senate voted on a bill that would have enshrined the “Buffett Rule” in the tax code, which would have ensured that millionaires and billionaires pay their fair share of taxes. With the bill’s defeat, Congress should consider other options to increase tax fairness.
