Urban Institute: Tax Policy Center

Tax Stimulus Report Card: Ways and Means Bill

Mon, 26 Jan 2009 00:00:00 EST

The Tax Policy Center has graded the key tax provisions of the pending House stimulus bill (the "American Recovery and Reinvestment Tax Plan of 2009"). Our grades, which rely on the bill's legislative language, focus on how well these measures would boost the economy in the short run. Accompanying write-ups describe current law, the proposed change, and the short- and long-term effects on the budget, the economy, fairness and tax complexity. We will update the report card as we learn more about the provisions and as the stimulus bill moves through Congress.

Experiment to Get Best Stimulus Results

paffairs@urban.org ( Leonard E. Burman) — Thu, 22 Jan 2009 00:00:00 EST

What will work best to stimulate the nation out of recession? Look to the states, saysLen Burmanin a commentary for public radio's Marketplace program.

President-Elect Obama's Tax and Stimulus Plans

paffairs@urban.org ( Roberton Williams) — Thu, 08 Jan 2009 00:00:00 EST

During the presidential campaign, Barack Obama proposed a comprehensive tax plan that would raise taxes on high-income taxpayers, cut taxes for low- and middle-income households, and lose $2.9 trillion dollars of revenue over ten years. Obama will take office with the economy in sharp recession and a deteriorating fiscal situation, made worse by new spending on a bailout plan. Faced with those crises, Obama says he will pursue both his campaign tax plan and additional tax-related proposals addressing problems created by the downturn. This paper examines revenue and distributional effects of the tax plan and describes some stimulus proposals.

Are There Opportunities to Increase Social Security Progressivity despite Underfunding?

paffairs@urban.org ( Melissa Favreault, Gordon Mermin) — Tue, 25 Nov 2008 00:00:00 EST

This paper reviews why Social Security fails to lift more aged low-wage workers and people of color out of poverty. It examines the payroll tax and benefit formula and reviews literature about OASDI outcomes by race, gender, and earnings level. It describes how mortality, earnings, disability, childbearing, immigration and emigration, and marriage patterns all differ across U.S. racial/ethnic groups, and highlights the importance of these differences for program outcomes. The paper then uses the DYNASIM model to examine lifetime OASDI redistribution under current law and a trust fund-neutral reform package that would enhance system progressivity and improve outcomes for some vulnerable to retirement poverty.

When Marginal and Statutory Tax Rates Differ

paffairs@urban.org ( Benjamin H. Harris, Ruth Levine) — Fri, 21 Nov 2008 00:00:00 EST

From an economic perspective, marginal tax rates play a critical role in determining the consequences of a change in tax policy. In an uncomplicated tax system the marginal rate is simply equal to the statutory rate. For millions of taxpayers, however, marginal tax rates differ markedly from statutory rates. Because of the tax code's wide array of phase-ins and phaseouts the majority of taxpayers face a different marginal rate than their statutory rate. Marginal and statutory rates differ for about two-thirds of married filers and heads of households and for about one-third of single filers.

The Automatic 401(k): Revenue & Distributional Estimates

paffairs@urban.org ( Christopher Geissler, Benjamin H. Harris) — Thu, 30 Oct 2008 00:00:00 EST

One promising aspect of retirement saving policy in recent years is the "automatic" or opt-out features in 401(k) plans. Automatic 401(k)s enable saving even if the worker makes no effort to participate in their 401(k) plan. Prior research has shown that automatic enrollment increased participation in 401(k) from 75 percent to as high as 90 percent of newly eligible employees; with the highest change among lower-income and minority workers. This paper provides estimates of the effects - on federal revenue and the distribution of after-tax income - of a policy under which all 401(k) plans are converted to automatic 401(k)s.

The Presidential Candidates' New Tax Proposals - October 27, 2008

paffairs@urban.org ( Roberton Williams) — Mon, 27 Oct 2008 00:00:00 EST

In response to the deterioration of the economy and the decline in asset values, Senators McCain and Obama have offered new proposals related to unemployment compensation, retirement savings, taxation of capital gains, and job creation. Although the proposals would provide some benefit, they have significant shortcomings.

The Next Stage for Social Policy: : Encouraging Work and Family Formation among Low-Income Men

Wed, 22 Oct 2008 00:00:00 EST

The Earned Income Tax Credit enjoyed marked success bringing low-income women into the labor force in recent years. At the same time, labor force participation by low-income or less-education men stagnated, and declined among young black men. In response to these labor market conditions, this paper analyzes several EITC reform options directed at increasing the EITC for low-income workers, in the hopes of drawing these men into the labor force. We estimate the cost of various proposals and put forth an additional proposal that breaks the EITC into two components one focused on individual workers and one focused on supporting children.

Back from the Grave : Revenue and Distributional Effects of Reforming the Federal Estate Tax

paffairs@urban.org ( Leonard E. Burman, Katherine Lim, Jeff Rohaly) — Mon, 20 Oct 2008 00:00:00 EST

In this paper we review the current wealth transfer tax rules and the changes introduced in 2001. We offer an overview of the methodology underlying the TPC's estate tax model and then use the model to estimate the number of estate tax filers, taxable returns, and the distribution of burden under current law. Finally, we investigate the revenue and distributional effects of several proposals to reform the estate tax, including those put forth by the presidential candidates.

The Impact of the Presidential Candidates' Tax Proposals on Effective Marginal Tax Rates

paffairs@urban.org ( Katherine Lim, Jeff Rohaly) — Tue, 30 Sep 2008 00:00:00 EST

A taxpayer's effective marginal tax rate (EMTR) is the percentage of an additional dollar of income that would be paid in federal income tax. An individual's EMTR could affect the decision to work or save more, or avoid income tax. We use the TPC's microsimulation model of the federal tax system to calculate EMTRs under current law and under the presidential candidates' proposals. The Obama plan would lower EMTRs for the majority of households in 2009. Close to 80 percent of the population would see no change in their EMTR under Senator McCain's plan; most others would face lower rates.

Sunday Forum: The Debt Bomb

paffairs@urban.org ( Rudolph G. Penner) — Sun, 28 Sep 2008 00:00:00 EST

The current financial crisis poses a severe threat to the economy, but it also creates a tremendous opportunity, writes Rudolph Penner in the Pittsburgh Post-Gazette. It gives politicians cover for undertaking painful actions to get the long-run deficit under control-actions that should have been taken long ago.

An Updated Analysis of the 2008 Presidential Candidates' Tax Plans: Executive Summary - Revised September 15, 2008

paffairs@urban.org ( Roberton Williams, Howard Gleckman) — Mon, 15 Sep 2008 00:00:00 EST

Both John McCain and Barack Obama have proposed tax plans that would substantially increase the national debt over the next ten years, according to a newly updated analysis by the non-partisan Tax Policy Center. Compared to current law, TPC estimates the Obama plan would cut taxes by $2.9 trillion from 2009-2018. McCain would reduce taxes by nearly $4.2 trillion. Obama would give larger tax cuts to low- and moderate-income households and pay some of the cost by raising taxes on high-income taxpayers. In contrast, McCain would cut taxes across the board and give the biggest cuts to the highest-income households.

International-Taxation Scholar Rosanne Altshuler to Become Co-Director of the Urban-Brookings Tax Policy Center

paffairs@urban.org ( The Urban Institute) — Mon, 15 Sep 2008 00:00:00 EST

Rosanne Altshuler, a Rutgers University economist specializing in international taxation and the former senior staff economist for President George W. Bush's Advisory Panel on Federal Tax Reform, will become codirector of the Urban-Brookings Tax Policy Center in January and a principal research associate at the Urban Institute.

Refundable Credits Have Cut Taxes for Low-Income Households

paffairs@urban.org ( Roberton Williams) — Tue, 19 Aug 2008 00:00:00 EST

In 1979, federal taxes claimed 8 percent of the income of households in the lowest quintile of the income distribution.1 Over the following three decades, the average effective tax rate (ETR) taxes as a percentage of income fell by nearly half to 4.3 percent in 2005. Most of the decline resulted from a sharp drop in the individual income tax, primarily due to expansion of the earned income tax credit and the child tax credit (CTC). Because the EITC is refundable and the CTC is partially refundable, they can reduce a households tax liability below zero and generate a net payment.

Who Pays Capital Gains Tax?

paffairs@urban.org ( Eric Toder) — Thu, 31 Jul 2008 00:00:00 EST

Fewer than one in seven individual income taxpayers reported taxable capital gains in 2006. Over half of taxpayers with gains had incomes below $75,000, but most capital gains were reported by very high income taxpayers. The 3 percent of returns with AGI over $200,000 reported 31 percent of AGI and 83 percent of capital gains; the 0.3 percent with AGI over $1,000,000 reported 15 percent of AGI and 61 percent of capital gains. Many more Americans accrue capital gains on corporate shares they hold within tax-deferred employer-sponsored retirement plans, but they do not pay capital gains tax on these gains.

An Updated Analysis of the 2008 Presidential Candidates' Tax Plans

Wed, 23 Jul 2008 00:00:00 EST

Tax and fiscal policy will loom large in the next president's domestic policy agenda. Nearly all of the tax cuts enacted since 2001 expire at the end of 2010 and the individual alternative minimum tax (AMT) threatens to ensnare tens of millions of Americans. While a permanent fix palatable to both political parties has proven elusive, both candidates have proposed major tax changes. This report describes how we performed our modeling and analysis, outlines the major tax proposals, and discusses the implications of their policies for the revenue raised, taxpayer economic activity, and the distribution of the tax burden.

An Updated Analysis of the 2008 Presidential Candidates' Tax Plans: Executive Summary

paffairs@urban.org ( Roberton Williams, Howard Gleckman) — Wed, 23 Jul 2008 00:00:00 EST

Both John McCain and Barack Obama have proposed tax plans that would substantially increase the national debt over the next ten years, according to an updated analysis by the non-partisan Tax Policy Center. Compared to current law, TPC estimates the Obama plan would cut taxes by $2.8 trillion from 2009-2018. McCain would reduce taxes by nearly $4.2 trillion. Under current law, the 2001 and 2003 tax cuts would expire in 2010 and the Alternative Minimum Tax would remain in full force.

A Preliminary Analysis of the 2008 Presidential Candidates' Tax Plans (Full Report)

paffairs@urban.org ( The Tax Policy Center) — Fri, 20 Jun 2008 00:00:00 EST

Tax Policy Center Establishes "Opportunity Fund" to Support Tax System Research and Analysis

paffairs@urban.org ( The Urban Institute) — Wed, 18 Jun 2008 00:00:00 EST

The Urban-Brookings Tax Policy Center launches a new intellectual venture capital fund to help policymakers, the public and the media better understand the U.S. tax system and the policy challenges facing the nation over the next decade. The $10 millionOpportunity Fund will includea $2.5 million challenge grant from the Gates Foundation.

Individual Taxpayers and Federal Tax Reform : Testimony before the United States Senate Committee on Finance

paffairs@urban.org ( William G. Gale) — Wed, 14 May 2008 00:00:00 EST

In the next few years, several factors will push tax issues to the forefront of policy discussions. First, under current law, almost all of the Bush Administration's tax cuts will expire at the end of 2010. A second factor is the rapid growth in the alternative minimum tax (AMT), which will increase the inequity and complexity of the tax system. A third issue is the expected increase in government spending over the next several decades. Despite these pressures on the system, tax changes are not inevitable, and achieving meaningful reformthat is, with substantial design improvementswill require strong political leadership. Gale's testimony focuses on some overarching principles that should guide tax reform efforts.

Book Probes Tax issues Facing the Next President and Congress, Offers Policy Lessons

paffairs@urban.org ( The Urban Institute) — Wed, 14 May 2008 00:00:00 EST

Eugene Steuerle's Contemporary U.S. Tax Policy, second edition, details how federal tax policy since the 1950s has evolved and trains an expert's eye on its considerable successes, shortfalls, and problems. He prefaces his account with an explanation of important tax policy principles and an overview of the main actors and their changing roles. Steuerle closes his engaging narrative with a perceptive analysis of President George Bush's unsuccessful second-term efforts to use commissions to reform Social Security and to rewrite the tax code.

A Blueprint for Tax Reform and Health Reform : Before the Senate Committee on Finance

paffairs@urban.org ( Leonard E. Burman) — Tue, 13 May 2008 00:00:00 EST

In this testimony Burman outlines a plan for tax reform that would maintain progressivity, raise enough revenues to finance the government, and dovetail with plans to provide universal access to health insurance. It would combine a value-added tax (VAT) dedicated to pay for a new universal health insurance voucher with a vastly simplified and much flatter income tax. With a new financing source for health care, income tax rates could be cut sharply-the top rates could be cut to 25 percent or less. The health care voucher would also offset the inherent regressivity of a VAT. And, under the simplified system, most Americans would not have to file income tax returns.

Bush-Era Tax Cuts Depart From History of America War Finance

paffairs@urban.org ( The Urban Institute) — Wed, 30 Apr 2008 00:00:00 EST

War and Taxes, to be released May 6 by the Urban Institute Press, chronicles the political arguments, economic conditions, and public opinions that made it possible for previous presidents and Congresses to raise taxes, sell bonds, and cut domestic spending to pay for wars. The authors contrast the tax hikes enacted to support previous military operations with the extraordinary tax cuts Americans have enjoyed during the current wars in Afghanistan and Iraqall without overstating previous generations' enthusiasm for wartime sacrifice.

Empowering the Next President

paffairs@urban.org ( C. Eugene Steuerle) — Wed, 02 Apr 2008 00:00:00 EST

What if President William Howard Taft and his Congress had written laws that specified how all the governments revenues at the beginning of the 21st century were to be spent? Preposterous? Well, the laws on the books today not only dictate how all revenues collected in 2030 and beyond will be spent, they also predetermine most of the next presidents spending. No wonder the campaign promises of the presidential candidates sound hollow.

Taxpayer Eligibility for IRAs

paffairs@urban.org ( Benjamin H. Harris, Christopher Geissler) — Fri, 07 Mar 2008 00:00:00 EST

The tax code limits the extent to which individuals may take advantage of the tax benefits associated with traditional and Roth IRAs. The only eligibility criteria for contributing to a Roth IRA are income and filing status. In contrast, eligibility for deducting contributions to a traditional IRA depends on those factors as well as on whether the taxpayer and the taxpayers spouse participate in an employer-provided pension. Taxpayers are subject to an assortment of phaseout ranges based on those criteria.

Tax Rates on Capital Gains and Dividends Under the AMT

paffairs@urban.org ( Benjamin H. Harris, Christopher Geissler) — Mon, 03 Mar 2008 00:00:00 EST

Recent tax acts sharply lowered tax rates on long-term capital gains and dividend income. For millions of taxpayers, however, the alternative minimum tax limits the benefits from these cuts by increasing the effective marginal tax rates on capital gains and dividend income. The culprit is the phaseout of the AMT exemption.

Does the Federal Income Tax Favor Small Business?

paffairs@urban.org ( Eric Toder) — Wed, 30 Jan 2008 00:00:00 EST

Small business is the source of our entrepreneurial genius, creativity, and productivity. Nonetheless, a substantial portion of our economic activity occurs within large corporations, non-profits and public enterprises. This paper discusses how the federal income tax treats firms of different sizes. It reviews specific provisions favoring small businesses and more general aspects of the federal income tax that may differentially affect firms of different sizes and also discusses how opportunities for tax avoidance and costs of complying with the tax law affect businesses of different size.

Emerging State Business Tax Policy : More of the Same, or Fundamental Change?

paffairs@urban.org ( William F. Fox, LeAnne Luna, Matthew N. Murray) — Tue, 29 Jan 2008 00:00:00 EST

Much of the state tax policy discussion during the past decade has centered on the performance of corporate income taxes and ways to restructure them. This report focuses on state responses to the weak corporate tax collections during the 2000-2003 period as well as to the revenue performance during the years immediately preceding and following the recession. The report is not an attempt to argue that the corporate income tax is an important component of good state tax policy. Instead, our focus is on identifying state tactics to maintain or change the tax, determining whether those strategies are good tax policy, and evaluating whether they are working to achieve the basic goals of the states.

Make the Tax Cuts Work

paffairs@urban.org ( Leonard E. Burman) — Wed, 23 Jan 2008 00:00:00 EST

New York Times, January 23, 2008 - Since 2001, official Washington's answer to every policy question has been the same. What should we do with a big surplus? Tax cuts. How do we beat back global terrorism? Tax cuts. Increase energy independence? Rebuild New Orleans? Expand health insurance coverage? Tax cuts, tax cuts, tax cuts. Now comes another question to which taxes have long been at least part of the answer. How do we stimulate the economy to prevent or shorten a recession?

State Education Spending: Current Pressures and Future Trends

paffairs@urban.org ( Sheila Murray, Kim Rueben, Carol Rosenberg) — Wed, 23 Jan 2008 00:00:00 EST

Education expenditures are one of the largest spending areas for state and local governments, and perpupil expenditures have been growing over time. We examine trends in state aid for education and overall education spending and decompose the existing drivers behind growing state costs. We then explore how predicted future demographic trends will affect education spending levels, as the percent of the population that is of school age falls. We conclude that there will continue to be a large state role in education funding, but demographic changes may lead to reduced political support for schools in the future.

Rangel's AMT Riddle Continues

paffairs@urban.org ( C. Eugene Steuerle) — Fri, 18 Jan 2008 00:00:00 EST

In this article, C. Eugene Steuerle explores the political and budgetary pressures facing Charles Rangel, the House Ways and Means Committee Chairman, with regard to the Alternative Minimum Tax (AMT). He further analyzes various options to fix the AMT, the ramifications for Rangel, and the path taken.

Bush Stimulus May Have Only Modest Effect

paffairs@urban.org ( Leonard E. Burman, Jeff Rohaly) — Wed, 16 Jan 2008 00:00:00 EST

In principle, a well-timed and carefully designed economic stimulus package can help avert or minimize a recession. In practice, timing a fiscal stimulus is nearly impossible since forecasters usually "predict" economic turning points only long after they have occurred. Len Burman and Jeff Rohaly discuss past experiences and current issues with economic stimulus packages in this Wall Street Journal Real Time Economics blog entry.

Huckabee Tax Plan Would Be A Disaster

paffairs@urban.org ( Leonard E. Burman) — Tue, 08 Jan 2008 00:00:00 EST

In this "Marketplace" commentary, Len Burman, director of the Tax Policy Center, explains why presidential candidate Mike Huckabee's FairTax proposal is misnamed.

Dire Future for Local Governments If Revenue-Raising Powers Are Not Fixed

paffairs@urban.org ( The Urban Institute) — Mon, 17 Dec 2007 00:00:00 EST

The existence of local governments will be in jeopardy without a significant change in the way they are financed, David Brunori warns in the new edition of his Urban Institute Press book "Local Tax Policy: A Federalist Perspective."

Revenue and Distributional Effects of the Individual Income and Estate Tax Provisions of Senator Thompson's Plan for Tax Relief and Economic Growth

paffairs@urban.org ( Leonard E. Burman, Greg Leiserson, Jeff Rohaly) — Mon, 10 Dec 2007 00:00:00 EST

Republican Presidential Candidate Fred Thompson has announced a tax plan that combines tax cut extensions, additional tax cuts, and an election to pay tax under a new alternative tax system that would substitute a larger standard deduction for all current deductions and credits and have two rates of 10 and 25 percent. Thompson's plan would reduce federal revenues by $6-7 trillion over ten years, amounting to a reduction of almost 20 percent below current projections, and would be highly regressive. This article describes the proposed changes in the individual income and estate tax and examines their implications for revenue and the distribution of tax burdens.

The Alternative Minimum Tax : Assault on the Middle Class

paffairs@urban.org ( Leonard E. Burman) — Mon, 29 Oct 2007 00:00:00 EST

In a tax code with no shortage of ironies, the alternative minimum tax (AMT) stands out. Created by Congress in 1969, it was aimed at millionaires, but relatively few millionaires pay it. It is billed as a low-rate levy, but most of its victims face higher taxes because of it. It undermines two widely lauded reforms of the income tax -- restoring both bracket creep and the marriage penalty. And though nobody favors keeping this Frankenstein alive, it will be very difficult to kill. Welcome to the tax policy twilight zone.

What is the Tax Gap?

paffairs@urban.org ( Eric Toder) — Mon, 22 Oct 2007 00:00:00 EST

In this paper Toder addresses issues related to measurement of the tax gapthe difference between tax liability under the current Federal tax law and taxes paid. He discusses how the tax gap is defined, reviews the main components of the tax gap, and describes how the IRS estimates it, as well as some of the major methodological issues in and weaknesses of current estimates. Toder concludes with some brief observations on the use and potential misuse of tax gap estimates and how compliance data might lead to better tax law administration.

Broader Issues in Taxing Hedge Fund Managers and Private Equity Partners

paffairs@urban.org ( C. Eugene Steuerle) — Mon, 15 Oct 2007 00:00:00 EST

If we're going to have a club whose members pay fairly low individual tax rates, we need to determine who deserves membership on the basis of principles. Few argue that letting hedge fund managers and private equity partners in the club furthers either progressivity or efficiency principles. The one legitimate argument for these club members' special status is simplificationcontinuing to treat all types of income the same among members of partnerships. Hardly convincing at all is the related argument that we shouldn't pick on this particular set of partners when plenty of others (say, individuals who manage their own portfolios) get the same low tax rates.

Navigating State and Local Finances

paffairs@urban.org ( Susan Kellam, Kim Rueben, Therese J. McGuire) — Fri, 28 Sep 2007 00:00:00 EST

This article summarizes a March 2007 TPC-Northwestern conference examining state and local finances. Reprinted from Lincoln Institute of Land Policy Land Lines October 2007 issue.

Tax Reform, Tax Arbitrage, and the Taxation of "Carried Interest" : Testimony before the U.S. House of Representatives Committee on Ways and Means

paffairs@urban.org ( C. Eugene Steuerle) — Thu, 06 Sep 2007 00:00:00 EST

C. Eugene Steuerle gave testimony on the taxation of carried interest before the U.S. House Committee on Ways and Means. He notes among his findings that as a matter of both efficiency and equity, capital gains relief is best targeted where tax rates are high, as in the case of the double taxation of corporate income. The case for providing capital gains relief for carried interest is relatively weak, resting primarily upon whether the administrative benefits of the simple partnership structure needs to be maintained in this arena; it does not rest upon arguments for favoring capital income, entrepreneurs, or risk.

End the Break On Capital Gains

paffairs@urban.org ( Leonard E. Burman) — Mon, 30 Jul 2007 00:00:00 EST

In this Washington Post commentary, senior fellow Len Burman explains why the capital gains tax break does more harm than good and why Congress should close the loophole once and for all.

The Individual Alternative Minimum Tax : Testimony before the U.S. Senate Committee on Finance

paffairs@urban.org ( Leonard E. Burman) — Wed, 27 Jun 2007 00:00:00 EST

The AMT threatens to grow from a footnote in the tax code to a major scourge affecting tens of millions of taxpayers every year. The practice in recent years has been to patch the AMT every year or two on a temporary basis so that not too many people are affected. The latest patch expired at the end of 2006. This testimony outlines how the AMT works, whom it affects, why it demands attention, and why financing AMT repeal or reform is important. Burman lays out a number of fiscally responsible options to fix or eliminate the AMT and discusses their effects on the distribution of tax burdens, the number of AMT taxpayers, and marginal tax rates.

Encouraging Homeownership Through the Tax Code

paffairs@urban.org ( William G. Gale, Jonathan Gruber, Seth Stephens-Davidowitz) — Wed, 27 Jun 2007 00:00:00 EST

Americans are taught from an early age to aspire to homeownership, and several long-standing federal institutions and regulations support owner-occupied residential housing. The income tax deduction for mortgage interest payments is possibly the best-known federal housing policy. Evidence suggests, however, that the mortgage interest deduction (MID) does little if anything to encourage homeownership. We propose a tax credit and a subsidized saving vehicle for first-time home buyers, financed by the elimination of the MID. Relative to current policy or to the President's Advisory Panel's recommendations, our proposals would be less expensive, more progressive, and more effective in encouraging homeownership.

Urban Institute Book Considers Taxation of Capital Income, Illuminates Policy Issues

paffairs@urban.org ( The Urban Institute) — Mon, 25 Jun 2007 00:00:00 EST

A new Urban Institute Press book delves into the intricacies of how the U.S. tax system deals with capital income and what switching to a consumption tax might mean. In Taxing Capital Income, some of the nations leading tax experts tackle three questions integral to capital income: Do we tax it? Should we tax it? Can we tax it?

A Proposal to Finance Long-Term Care Services through Medicare with an Income Tax Surcharge

paffairs@urban.org ( Richard W. Johnson, Leonard E. Burman) — Fri, 22 Jun 2007 00:00:00 EST

This paper proposes to expand Medicare to cover comprehensive long-term care services, including home care and custodial nursing home care. These services would be financed by a surcharge on federal income taxes. Unlike the regressive payroll tax that finances Medicares hospitalization coverage, the proposed surcharge would not increase tax burdens for low-income people. Beneficiaries would share costs through deductibles and copayments, but the program would include stop loss coverage and special protections for low-income adults. By providing long-term care insurance that protects the assets of older adults, our proposal would eliminate the savings disincentives inherent in the means-tested Medicaid system.

Esteemed Economist Proposes Subprime Mortgage Reforms in New Book

paffairs@urban.org ( The Urban Institute) — Tue, 19 Jun 2007 00:00:00 EST

A new Urban Institute Press book offers a slate of reform opportunities for the ailing subprime mortgage market and provides one of the first comprehensive analyses of this still-evolving segment of the mortgage industry.