The return of the Pease Amendment, which limits the amount of itemized deductions a high-earner may take, has received little media attention because it is not as easy to explain or quantify as a change in tax rates.
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Their rhetoric often implies not only that lower tax rates stimulate economic activity and tax revenue and that that higher tax rates depressed economic activity and tax revenue, but they often go further and imply that any change in tax rates would be so powerful as to have Laffer-curve effects.
Earnings of companies do not change when there is a change in individual tax rates, so the value of their common stock does not change for most institutional investors.
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First, though lower income taxes are generally economically better than higher, no recession ever was kicked off primarily by an incremental change in marginal income tax rates.
Besides, while the House budget proposed massive changes in the tax code through cuts in both rates and tax expenditures, it anticipates no net change in projected revenues.
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The impact of changes in tax rates on tax revenue depends in part on the levels of taxation before the change.
Such outfits would seem, at first blush, to be certain losers in a tax change that rewards dividend payers and raises rates for everyone else.
They charge up to ten times more than informal channels, must change money at official rates and, in some countries, levy a tax on the exchange.
It may be that only a fundamental change in the way we tax multinational companies, and not just a cut in rates, can fix the many problems that vex our corporate tax system.
The key factor in determining whether a Roth beats a conventional IRA is how your tax rates change.
For someone who has been building up a pool of savings for a lifetime, the cost of extraordinarily low interest rates can make some of the proposed changes in the federal tax code look like chump change.
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