Michael R. Strain | Bloomberg ViewMichael Strain argues that effective tax reform should be guided by big-picture goals and principles. Strain outlines some of these goals such as a tax system that treats similarly situated people equally and reform that encourages long-run economic growth. He believes that tax reform needs to both reduce distortions and encourage fiscal responsibility to promote economic growth. Strain argues that the primary purpose of the tax system is to provide the government with revenue -- that revenue should be raised in the least distortive way possible.
Best part of Republican tax plan is repeal of the state tax deduction
Alex Brill | The HillAlex Brill argues in favor of repealing the state and local tax (SALT) deduction, believing it would be an important move toward broadening the tax base. He believes that repealing the SALT deduction alone can finance a cut in the top tax rate to 35 percent and a reduction in other rates, preserve the tax code’s progressivity, substantially increase the number of taxpayers on the standard deduction, and cut taxes for half of all filers. Brill elaborates on and provides a graphical illustration of the SALT deduction here. His illustrations show that by removing the unfair tax advantage people in high-tax states currently have, this change will result in a tax cut for 80 million taxpayers.
AEI tax brief: The child tax credit versus the earned income tax credit
Aparna Mathur and Cody Kallen | AEI AEI Tax Briefs aim to offer insights using open source models. In this AEI Tax Brief, Aparna Mathur and Cody Kallen explore doubling the child tax credit and expanding the earned income tax credit. They find that the benefits of the EITC expansion would be more concentrated among low-income households, but the benefits of doubling the child tax credit can spread across the income distribution.