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Taxes

Taxes
March 21, 2017
Senator Warren's 'Trust The IRS' Bill
The Internal Revenue Service was weaponized under Obama to go after right wing groups, but now Socialist Elizabeth Warren wants us all to trust their judgment.
Energy
March 20, 2017
The Social Cost of Carbon Regulations
Anti-fossil fuel SCC relies on garbage models, ignores carbon benefits and hurts the poor.
Government Spending
March 9, 2017
State Lawmakers Working to Protect Property Rights
Most people assume government police are tasked with stopping robbers, but a little-known legal fiction effectively allows the cops to become the robbers.
More News
Taxes
March 8, 2017
Trump Charts His Road To Restoration Of Booming American Prosperity
Addressing a joint session of Congress on February 28, President Trump charted his path to restoring booming economic growth — major tax reform, repeal/replacement of Obamacare, massive deregulation and more.
Taxes
March 5, 2017
Raise Cigarette Tax to Fix Budget, Connecticut Governor Says
Connecticut Gov. Dannel Malloy (D) wants to raise the state’s excise taxes on cigarettes to help cover a projected state budget gap of $1.7 billion, or about $472 in debt per Connecticut resident.
Taxes
March 2, 2017
Illinois Lawmakers’ ‘Grand Bargain’ Tax Hike Vote Delayed
Illinois Senate President John Cullerton (D-Chicago) blamed Gov. Bruce Rauner (R) for Cullerton’s derailment of scheduled votes on spending and taxation, accusing Rauner of “interjecting himself” into negotiations over a “grand bargain” deal.
 

The Issue

The national government currently faces a national debt of $18 trillion. National entitlement programs are all on paths to bankruptcy, some as soon as this year. Many states and cities face their own impending financial cliffs as years of over-promising wages and benefits to public workers collide with chronic under-funding of public pension funds. Government debt is a “ticking time bomb” that threatens to destroy people’s savings, the economy, and America’s leadership in the world.

The regulatory state is similarly out of control. According to the Competitive Enterprise Institute’s annual survey of the cost and reach of regulations, federal regulation and intervention cost American consumers and businesses an estimated $1.88 trillion in 2014 in lost economic productivity and higher prices. Economy-wide regulatory costs amount to an average of $14,976 per household – around 29 percent of an average family budget of $51,100. Although not paid directly by individuals, this “cost” of regulation exceeds the amount an average family spends on health care, food, and transportation.

In order to stop tax hikes and compel elected officials to control spending, free-market advocates must first prove that lower taxes, privatization of public services, and tax and spending limitations yield stronger economic growth and prosperity. The Heartland Institute, along with many other excellent think tanks and advocacy groups, produces research and commentary making this point. Legislators armed with good information can win debates and get their legislation passed, persuade constituents, and mobilize interest groups that benefit from good policy choices.

Some of the major budget and tax issues we address include:

Constitutional reform: Taxes and spending by the national government have risen far above levels that are sustainable. Congress and the president have demonstrated their inability to constrain spending or to balance the budget. The only real solution is for the states to exercise their power under Article V of the constitution to propose constitutional amendments that will mandate a balanced budget and in other ways rein in the federal government.

Entitlement reform: Heartland Senior Fellow Peter Ferrara has written extensively on the best ways to reform Social Security and Medicare to ensure that the benefits promised to seniors are kept without economy-crushing tax increases.

Public pension crisis: States across the country face structural budget deficits as a result of too-generous pension promises made to their employees. Mandatory payments into pension funds divert money away from essential government services and create pressure for tax increases.

Welfare reform: Income inequality is an issue being widely debated today. Democrats think they have a solution in raising the minimum wage, but a better solution is bipartisan welfare reform that takes money from bureaucracies and programs that aren’t working and gives it to the poor through programs that reward work and lead to self-sufficiency.

Excise taxes: State governments collected approximately $32 billion in 2014 by taxing “sinful” products and activities, including gambling, smoking, and alcohol. But relying on sin taxes is poor tax policy: They are regressive, unreliable, and unrelated to the benefits of public services financed by their revenues.

Right-to-Work Laws: There are now 26 right-to-work states as a result of educational efforts by The Heartland Institute and others. Right-to-work is a reform that creates new jobs and improve states business climate and economic competitiveness by guaranteeing that no person applying for a job can be forced, as a condition of gaining employment, to join or pay dues to a labor union.

Featured Subtopics

Smokestack emissions
Carbon dioxide emissions in the United States are falling dramatically. Carbon taxes won’t make that happen any more quickly, but they will hurt consumers, the economy, and the environment.
Beer and cigarettes and piggy bank
Excise taxes, often called "sin taxes," should be avoided because they distort the market and encourage unsustainable increases in government spending while placing an unnecessary burden on lower-income taxpayers.
Gasoline pump and money
The U.S. vehicle fleet is become increasingly fuel-efficient, causing motor-fuel tax revenues to be on the decline. Taxing a declining industry is not sound fiscal policy and only increases the burden on individuals and families.

Additional Subtopics

  • Capital Gains Tax
  • Economic Growth
  • Estate Tax
  • Foreign
  • Gross Receipts Tax
  • Income Tax
  • Interstate Comparisons
  • IRS
  • Land Value
  • Other Taxes
  • Property Tax
  • Sales Tax
  • Tax Increment Finance
  • Tax Reform: Federal
  • Tax Reform: States
  • Telecom and Internet Taxes
  • Tourism Taxes
  • Value Added Tax

Videos

Title: Funding Education Choice: Jason Bedrick
Description: Jason Bedrick of the Cato Institute explains how your tax dollars can be better used to educate your children and grandchildren. Bedrick discusses the use of vouchers, education savings accounts, and other funding options to educate those who will be the future of this country. Bedrick is a policy analyst at the Cato Institute's Center for Educational Freedom. He earned his master’s degree in public policy, with a focus on education policy, from the John F. Kennedy School of Government at Harvard University. His thesis, “Choosing to Learn,” assessed the scholarship tax credit programs operating in eight states, including their impact of student performance, fiscal impact, program design, and popularity.

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The Heartland Institute's experts on tax policy are available for legislative testimony, speaking engagements, and media interviews.

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