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View Research by Author - Amanda Eng

Publications


Viewing 1-9 of 9. Most recent posts listed first.

Municipal Debt: What Does It Buy and Who Benefits? (Research Report)
Harvey Galper, Kim Rueben, Richard C. Auxier, Amanda Eng

This paper examines the incidence of the federal income tax exemption of interest on state and local bonds, applying a fixed-savings, simplified general equilibrium approach to estimate incidence effects on both the sources and uses of income. In contrast to traditional empirical work that allocates the benefit of tax exemption only to current holders of tax-exempt bonds based on current interest rates, we incorporate the fact that the existence of tax exemption causes the taxable interest rate to rise and the tax-exempt rate to fall. As a consequence, on the sources side, tax exemption can increase after-tax income for holders of both taxable and taxexempt bonds. On the uses side, consumers of both private and public goods are affected by the higher cost of funds to private and federal government borrowers, the lower cost of funds to state and local borrowers, and the lower cost of funds to private-sector entities with access to the proceeds of tax-exempt borrowing. Overall, higher income individuals remain the primary beneficiaries of tax exemption on the sources side with this new approach, but less so than under the traditional approach. On the uses side, households who consume a relatively large share of state and local public services, such as those with several school-age children, receive significant net benefits.

Posted to Web: October 29, 2014Publication Date: October 29, 2014

Preliminary Estimates of the Impact of the Camp Tax Reform Plan on Charitable Giving (Research Report)
Joseph Rosenberg, C. Eugene Steuerle, Ellen Steele, Amanda Eng

This note estimates the effects of four groups of provisions from the Tax Reform Act of 2014 on individual charitable giving. The provisions of the tax reform plan, released earlier this year by House Ways and Means Committee Chairman Dave Camp (R-MI), are estimated to decrease individual giving by 7 to 14 percent.

Posted to Web: September 10, 2014Publication Date: September 10, 2014

Description and Analysis of the Camp Tax Reform Plan (Research Report)
Jim Nunns, Amanda Eng, Lydia Austin

This paper describes the major provisions in the “Tax Reform Act of 2014,” the comprehensive tax reform plan released on February 26, 2014, by Ways and Means Committee Chairman Dave Camp (R-MI). It also presents the Tax Policy Center’s analysis of the plan’s revenue impact beyond the 10-year budget period, distribution of the tax burden, economic incentives, and compliance costs.

Posted to Web: July 08, 2014Publication Date: July 08, 2014

Updated Options to Reform the Deduction for Home Mortgage Interest (Research Report)
Amanda Eng

Under current law, taxpayers may deduct interest paid on up to $1 million of acquisition debt used to buy, build, or improve a primary or secondary residence. Taxpayers can also deduct interest paid on up to $100,000 in home equity loans or other loans secured by their homes. This report analyzes four options to replace the current mortgage interest deduction with credits that are designed to improve incentives for homeownership. These options include a nonrefundable credit of up to 15 percent of eligible mortgage interest, a nonrefundable credit of up to 20 percent of eligible mortgage interest, a refundable credit of a fixed percentage of property taxes paid, and a flat amount refundable credit for all homeowners. The first two options would limit eligible interest to the amount paid on up to $500,000 of an eligible mortgage. The report also considers options that phase out the mortgage interest deduction and phase in the new credits over five years.

Posted to Web: May 14, 2014Publication Date: May 14, 2014

Evaluating Broad-Based Approaches for Limiting Tax Expenditures (Research Report)
Eric Toder, Joseph Rosenberg, Amanda Eng

This paper evaluates six options to achieve across-the-board reductions to a group of major exclusions and deductions in the income tax: (1) limiting their tax benefit to a maximum percentage of income; (2) imposing a fixed dollar cap; (3) reducing them by a fixed-percentage amount; (4) limiting their tax saving to a maximum percentage of their dollar value; (5) replacing preferences with fixed rate refundable credits; and (6) including them in the base of the existing Alternative Minimum Tax (AMT). We discuss issues of design, implementation, and administration, and simulate the revenue, distributional, and incentive effects of the various options.

Posted to Web: February 06, 2014Publication Date: December 31, 2013

New Perspectives on Homeownership Tax Incentives (Research Report)
Amanda Eng, Benjamin H. Harris, C. Eugene Steuerle

This report presents three tax reforms designed to promote homeownership through a channel other than the deductibility of mortgage interest. These reforms include a first-time homebuyer tax credit, a refundable tax credit for property taxes paid, and an annual flat amount tax credit for homeowners—all paid for by limiting current tax expenditures for housing. Although far from perfect, these reforms would provide a more efficient and equitable allocation of housing subsidies. Our simulations show that relative to existing incentives, each policy would raise home prices and make the tax code more progressive.

Posted to Web: January 06, 2014Publication Date: January 06, 2014

The Benefits of the Mortgage Interest and Property Tax Deductions (Article/Tax Facts)
Benjamin H. Harris, Amanda Eng

The benefits of itemized deductions for mortgage interest and property taxes vary by income and demographic characteristics. The two deductions increase after-tax income most for high-income families, particularly those with children, while low-income households hardly benefit at all. On average, homeowners in the highest quintile see a 1.4 percent rise in after-tax income, compared with just a 0.3 percent increase for those in the middle quintile and virtually no gain for those in the bottom two quintiles. Within each income quintile, families with children experience the largest income boost, while elderly households benefit the least.

Posted to Web: August 27, 2013Publication Date: August 26, 2013

Evaluating Broad-Based Approaches for Limiting Tax Expenditures (Research Report)
Eric Toder, Joseph Rosenberg, Amanda Eng

This paper evaluates six options to achieve across-the-board reductions to a group of major exclusions and deductions in the income tax: (1) limiting their tax benefit to a maximum percentage of income, (2) imposing a fixed dollar cap, (3) reducing them by fixed-percentage amount, (4) limiting their tax saving to a maximum percentage of their dollar value, (5) replacing them with fixed rate refundable credits, and (6) including them in the base of the existing Alternative Minimum Tax (AMT). We discuss issues of design, implementation, and administration, and simulate the revenue, distributional, and incentive effects of the various options.

Posted to Web: July 10, 2013Publication Date: July 10, 2013

Options to Reform the Deduction for Home Mortgage Interest (Research Report)
Amanda Eng, Harvey Galper, Georgia Ivsin, Eric Toder

Taxpayers can currently deduct interest on up to $1 million in acquisition debt used to buy, build, or improve their personal residences and interest on up to another $100,000 of home equity loans. This brief estimates the effects on revenue and the distribution of the tax burden of proposals that would replace the current mortgage interest deduction with a non-refundable interest credit of either 15 or 20 percent of interest and reduce the ceiling on the amount of all eligible mortgage debt to $500,000. We also estimate the revenue effect of phasing in the proposals over five years.

Posted to Web: March 18, 2013Publication Date: March 18, 2013

 

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