Democratic presidential candidates and members of Congress are vying with one another to raise marginal tax rates for high-income earners, particularly the top 1 or 2 percent of taxpayers. A careful review of economic theory and evidence suggests that raising tax rates at the top is an...

Congress has recently considered taxing the carried interest of private equity fund managers at ordinary rates rather than at the 15 percent rate that currently applies to a portion of this income. The proposed change is intended to promote neutrality between the labor compensation of fund...

Recent studies assert that corporations receive a government subsidy by being allowed ordinary business expense deductions for payments of performance-based executive compensation. There is no subsidy, however, because the compensation payments do not receive any preferential tax treatment. The...