The $69 billion mortgage interest deduction (MID) is often viewed as an element of the tax code that promotes middle-class prosperity. However, 64 percent of the benefits, as measured by effective tax reduction, goes to households earning more than $100,000 per year. The large variation in...

The "use it or lose it" phenomenon refers to the propensity of US government agencies to spend unused financial resources toward the end of the fiscal year out of fear that leftover resources will be returned to the Department of the Treasury, and will prompt future congressional budget cuts for...

The current legislative and regulatory processes may not adequately inform Congress about the scope and economic consequences of legislation. Even if Congress had such information, no mechanism exists to allow Congress to easily act upon it. The budget process permits Congress to monitor and...

The Base Erosion and Profit Shifting (BEPS) Project of the Organisation for Economic Co-operation and Development (OECD) attempts to fundamentally change the international tax system by protecting high-tax states at the expense of economically friendly low-tax states. The OECD is concerned that...

This paper provides an overview of the intent of the Medicaid program and its budgetary implications. In 1965, when Medicaid was created under Title XIX of the Social Security Act to provide health insurance for low-income individuals, the program was considered an afterthought to Medicare....

The way the US corporate tax code requires capital expenditures to be depreciated is highly distortionary and raises the cost of capital investments. Depreciation?the process of writing off capital purchases over time?has received attention because it is the largest corporate tax expenditure in...

The use it or lose it phenomenon refers to the propensity of US government agencies to spend unused financial resources toward the end of the fiscal year out of fear that leftover resources will be returned to the Department of the Treasury and will prompt future congressional budget cuts for...

Many Social Security reform proposals have emphasized the role of savings over insurance, focusing on retirement. In contrast, disability in prime working age is harder to save for and thus is arguably better considered an insurable event. However, unlike determination processes for many other...

Economic growth is driven by new ideas, innovation, and technology. Since 1981, the research and development (R&D) tax credit has attempted to lower the cost of these activities through subsidies in the tax code. Theory often predicts benefits from subsidies for R&D, but policymakers are not...