On July 7, 2011, the Department of the Treasury’s Inspector General for Tax Administration (TIGTA) issued a telling report. TIGTA found that unauthorized workers who are ineligible to obtain Social Security Numbers (SSNs), the vast majority of whom are illegal immigrants, were paid $4.2 billion in refundable tax credits in 2010.
Tobacco Excise Taxes Burn Down Federal Revenues
An April 2012 Government Accountability Office (GAO) report found that excise tax increases on certain tobacco products have resulted in dramatic shifts by manufacturers and consumers toward lower tax products. Specifically, the implementation of taxes on roll your own tobacco and small cigars have led to increases in production and consumption of pipe tobacco and large cigars. While the government has historically used tobacco taxes to raise revenue, GAO’s study revealed that these disparities in taxation instead decreased federal revenues.
President Obama’s Corporate Tax Plan Invites Crony Capitalism
On February 22, 2012, President Obama released a proposal to lower the corporate tax rate from 35 percent to 28 percent, while also eliminating loopholes in the tax code. Considering that the effective corporate tax rate of 34.6 percent in the U.S. is the highest rate in the Organization for Economic Cooperation and Development (OECD) and is nearly 50 percent higher than the OECD average, a move to a lower rate is long overdue. Unfortunately, the devil in the White House’s plan lies in the details.
Connect America Fund: Continuing the Universal Service Fee with No End in Sight
On November 18, 2011, the Federal Communications Commission (FCC) issued its much-anticipated 759-page proposed rulemaking for the Connect America Fund (CAF), which sets out to reform the Universal Service Fund (USF) and the Intercarrier Compensation (ICC) programs. Public comments on certain sections of the rulemaking are due by January 18, 2012, and on other sections by February 17, 2012.
Two Different Worlds: Public vs. Private Sector Compensation
Despite the popular belief that federal employees are underpaid public servants, the data tells a very different story. When all of the factors that affect compensation are accounted for, there is significant evidence that federal employees make considerably more than their private sector counterparts.
Why America Must Lower Its Corporate Income Tax Rate
America is stuck in the middle of a corporate tax nightmare. While the rest of the industrialized world has realized that low corporate tax rates are necessary to succeed in the twenty-first century global economy, America continues to miss the boat.
Tax Dollars Disappear into Black Hole
March is National Black Hole Awareness Month, a perfect time to match science with spending. While scientists continue to identify black holes in the far reaches of space, the closest and most deadly vortex is the nation’s $14.3 trillion national debt. Indeed, there are striking similarities between the astronomical black holes and the fiscal abyss facing the United States.
Future Shock
In the 1986 ad known as “The Deficit Trials,” a young prosecutor speaks on behalf of a poor, tattered generation that by 2017 has suffered the consequences of failing to address what was then a $2 trillion national debt. Today, at $14.3 trillion, or $45,800 for every man, woman and child in America, Washington continues to put off the tough decisions necessary to solve the rapidly growing problem.
Obama’s SOTU, Yet Another Disappointment for Taxpayers
During a time of record annual budget deficits and public debt, the country, more than ever, needs solutions to its fiscal problems. Most taxpayers were expecting the President’s State of the Union speech to signal a major policy shift, away from rampant government spending and toward private sector solutions to the nation’s fiscal woes. Instead they heard the President pay lip service to a few spending issues and introduce more programs for which taxpayers will be responsible. In short, it was a major disappointment.
State Piglet Roundup
In conjunction with state taxpayer groups, Citizens Against Government Waste (CAGW) released sixPiglet Books in 2010. The Piglet Books bring CAGW’s national expertise in exposing waste, fraud and abuse to the state and local levels.