Heritage Fuels a Conservative Victory on ‘Dynamic Scoring’


In Heritage Work

Congress has enacted a major reform to the way it does business that will enable a more accurate analysis of how legislation affects the economy.

Heritage’s Patrick Knudsen explained last spring what this reform, known as “dynamic scoring,” really means: “The principle is that certain changes in fiscal policy, such as reductions in tax rates, can alter both behavior and economic output, which in turn can affect the magnitude of changes in federal tax revenue.”

Had dynamic scoring been used by Congress earlier, lawmakers and the public might have better understood the costs of Obamacare and the benefits of conservative proposals like tax reform.

Heritage experts have given lawmakers the intellectual ammunition to adopt this reform, and spent much of 2014 making the case: Continue Reading »

Or Is It High U.S. Tax Rates That Are Unpatriotic?

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In Heritage Impact

Over the summer, President Obama called companies who are trying to minimize their taxes “unpatriotic.” A Heritage Foundation economist had a clever retort in the Morning Consult:

David Burton, a senior fellow in economic policy at the Washington-based Heritage Foundation, said another way to look at the “unpatriotic” argument is to question the patriotism “of those who keep the U.S. tax rates so high” since they’re maintaining the highest corporate tax rate among industrialized countries.

Heritage’s Curtis Dubay points out that the best way to end these “inversions” is to reduce the business tax rate and move to a territorial tax system that doesn’t penalize American firms with overseas operations.

What do you think the corporate tax rate should be?

The Truth About Thomas Piketty That Liberals Don’t Want to Hear

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In Heritage Work

Economist Thomas Piketty made headlines earlier this year–and gave comfort to liberals–with a provocative new book predicting permanently-rising inequality and recommending massive wealth transfers.

The problem is, Heritage Foundation economists Curtis Dubay and Salim Furth write in a new report, Piketty’s claims rest on dubious premises. In fact, “almost nothing in Capital in the Twenty-First Century can be usefully applied to policymaking.”

You can use this chart to rebut liberals who use Piketty to defend their claims:

What do you think are the best arguments you use when debating liberals?

The IRS Is Extending Its Influence Abroad

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In Heritage Work

The Foreign Account Tax Compliance Act goes into effect next month. FATCA was passed in 2010 to crack down on tax evasion, but Heritage Foundation experts Anthony Kim and Curtis Dubay report that the law actually hurts Americans living and working abroad.

“Like another ill-considered piece of legislation enacted that same year (Obamacare),” they explain, “FATCA granted the IRS a new level of intrusiveness into the lives of Americans.”

Instead of growing government, Kim and Dubay recommend a broad tax reform, which would “help curtail tax evasion in a more effective way without resorting to onerous and intrusive regulations such as FATCA.”

What do you think? Should the IRS be able to extend its reach this way?

5 Ways Tax Reform Would Help You and Every American

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In Heritage Work

Heritage Foundation expert Curtis Dubay explains how a principled, conservative tax reform would help you:

  1. Your annual income would grow
  2. Taxes would be simpler to file
  3. The tax code would be fairer
  4. Government’s role in the economy would be smaller
  5. The IRS would have less power

Heritage’s Saving the American Dream plan outlines solutions on taxes, spending, and other issues.

Do you think Congress will act on tax reform this year?

The Real Reason Congress Is Bullying Apple: They Want Apple to Pay More Taxes


In Heritage Work

Apple executives were called in to testify before members of Congress yesterday. They were accused of “shifting” profits abroad to avoid paying taxes.

The fact of the matter, though, as Heritage Foundation tax expert Curtis Dubay told Fox Business yesterday, is that the money hasn’t been shifted at all because it wasn’t earned in the U.S. “I can’t go down to the Apple store here in Washington, buy an iPad, and have Apple then ‘shift’ that income abroad,” he said.

The U.S. corporate tax rate is the highest rate in the world. As long as it remains so exorbitant, successful businesses like Apple are going to keep their foreign income abroad.

Heritage’s Amy Payne has more:

The reason the Senate feigned indignation over an issue that had nothing to do with the U.S. is that some Members want Apple to pay more U.S. tax on all that foreign cash. They want Apple to bring all of that profit back into the U.S. and pay the U.S. corporate tax rate—the world’s highest—on it. But as long as we keep the U.S. rate the highest in the world, Apple and other multinational businesses are going to keep their foreign income abroad.

Apple has not done anything illegal by minimizing its tax liability. Because of America’s extremely high corporate tax rate, many companies don’t return to the U.S. what money they earn abroad. While other countries have been making efforts to cut their corporate tax rates, the U.S. has been making it more and more difficult for U.S. businesses.

Do you think Apple should pay more in taxes? Or should we fix the tax code to stop punishing successful firms?

No, We Don’t Need More Taxes

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In Heritage Work

As they debate how to resolve the federal deficit, lawmakers need to avoid any additional tax increases, Heritage Foundation scholar Curtis Dubay argues.

“There will be plenty of revenue coming into Washington over the next 10 years,” Dubay explains. “Additional tax hikes would not address the problem of excessive spending but instead give more money to Congress and President Obama to spend.”

And tax increases would slow economic growth and limit opportunity: Continue Reading »

Answers to Six of Your Questions About the Tax-Hike Deal


In Heritage Work

Photo: Flickr/KP Tripathi

Late Tuesday night, the House of Representatives approved the Senate’s last-minute fiscal cliff” deal that raises taxes on most American workers. Here are some answers to important questions you may have about what lawmakers actually agreed to.

What does it boil down to? The law includes $10 in tax increases for every $1 in spending cuts. Ultimately, this bill actually increases government spending by $330 billion.

Will normal Americans like me be affected?  Continue Reading »

Heritage’s Top 10 Policy Reports of the Year


In Heritage Impact & Heritage Work

Year after year The Heritage Foundation continues to make an impact in the fight for conservative principles. This year, Heritage’s expert policy analysts testified before Congress 34 times and distributed more than 1,100 policy reports on Capitol Hill. Below is the list of the top 10 most read research papers of the year: Continue Reading »

Heritage’s Domestic Policy Experts Respond to Last Night’s Debate


In Heritage Work

Last night, Heritage Foundation experts live-blogged their analysis of the issues raised as President Obama and Gov. Mitt Romney debated. Heritage’s Amy Payne rounds up our what our experts were saying.

Tax expert Curtis Dubay on the need for tax reform:

Obama repeated the falsehood that Romney’s plan would raise taxes on the middle class. This incorrect assertion was spread by a biased report from the Tax Policy Center. Romney’s plan can make pro-growth changes to the tax code and doesn’t have to raise taxes on the middle class.

Read our experts’ takedown of the Tax Policy Center’s flawed report. Continue Reading »

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