(1) Adequately funding the IRS will help enforce the laws on the books and especially when it comes to the highest-income filers & large businesses. WSJ op-ed board using bad arguments and bad data against proposal. A 🧵. (2) @dashching and @TaxLawCenterNYU anticipated many of these arguments in their blog. medium.com/@taxlawcenter/…

(1) @KClausing is exactly right here. The Inflation Reduction Act is a good bill that deserves to pass and will leave most Americans—those outside the very top—better off in a range of ways. A few addtl thoughts on how this improves the tax system.

https://twitter.com/KClausing/status/1554520765436870656

(2) As @jasonfurman put it this mornng, in the end, what’s most impt is revenue and distribution. We need more revenue and effects should be progressive.

https://twitter.com/jasonfurman/status/1554489136505135105

(1) A 🧵 on the 15% corp book min tax in the reconciliation deal. It raises $300 bn+ from largest corps, and that’s a good thing. Congress should now enact, and hopefully lay groundwork for the global min tax that the U.S. can adopt looking ahead. (2) What is it? U.S corps with over $1 bn in income will have to pay at least 15% based on financial statement income. So will subsidiaries of large foreign corps operating in U.S.

(1) A few thoughts as people write the obituary for tax reform in this reconciliation bill. As one who worked on and supported many of these reforms, I wanted to say a few hopeful words to add to the lessons of recent yrs -- because there's enough pessimism to go around.

https://twitter.com/RichardRubinDC/status/1551908044459884544

(2) It starts with the fact that these reforms – raising taxes on corps and the top and a lot better enforcement -- were on the table in the first place. Sure, there were forces pushing against and they won for now. But, many candidates ran on the ideas because they’re popular.

Another norm broken. And at cost of transparency and policy. Admin. is taking positions on relief for economy -- and saying only limited addtl. support needed. These projections would force them to quantify and justify that position. They apparently can't.

https://twitter.com/JStein_WaPo/status/1265972481141215233

They say the team is busy with the crisis. It should be. But, what is the econ team doing if not developing a coherent theory of the economy and response to it? Budgets can empower executive -- by giving president floor -- but also constrain by requiring certain transparency.

1/11 A few thoughts on PPP mess and policy going forward. To over-simplify, several related goals in giving $$$ to biz: (1) have that passed on to employees of the firms; (2) fill solvency holes of owners; (3) provide credit to solvent firms given failures in credit markets. 2/11 PPP wasn’t clearly designed to address any one of these goals. Some mix, and incoherence has led to giveaways to at least some firm owners not facing solvency holes and doing fine, and others facing such holes that don’t get $$$.

1/ We need to change how we tax the richest Americans. We right now do it ineffectively. The Warren wealth tax proposal is a big move to try to change that and make sure the best off really pay according to ability.

https://twitter.com/JStein_WaPo/status/1088507658208989184

2/ Why are we so ineffective at taxing those at the top in the income tax? Because of two things—the “realization rule” and “step up in basis.”

1/ Admin is now issuing new withholding tables. But a lot more guidance needed so Americans know how much taxes to pay. How the new 20% deduction is generating uncertainty and perverse incentives for millions of American workers. medium.com/whatever-sourc… 2/ The questions: Under $315K in tax. income for a couple, do you get the ded. so long as you don’t work as an employee, instead as indep contractor or partner? Above threshold, do you get it if you meet other restrictions—and, again, make sure not to work as an employee?

1. Conference tax bill will lead to massive tax planning and game-playing undermining income tax, benefiting well-advised, and likely leading leg to cost considerably more than estimates suggest. Updated report from tax experts across country: ssrn.com/abstract=30894… 2. Core prob: Unjustifiable loopholes and giveaways benefiting some activities, not others; some forms, but not others. Complex, unfair, inefficient—and gameable. Some examples from report:

1/ Under tax bills, how to pay 20% on labor earnings using a c-corp? How to be a “partner,” not employee and get pass through rate? New report from tax experts across country on games, roadblock, and glitches in new legislation: ssrn.com/abstract=30841… 2/ Bills were written quickly with lots of special preferences and complex rules to govern. Result = mess that is likely to result in substantially more revenue loss than now expected generally benefiting well off and advisors.

Amendments to Senate tax bill last night made clear the trade-offs required by tax cuts and demonstrated Republican priorities. Chained CPI + health mandate repeal (+13 mn uninsured) paying for half corporate rate cut in 2027. My take here: medium.com/whatever-sourc… Here's the approximate distribution of chained CPI explicitly paying for $30 billion of corporate rate reductions as of 2027. Repeal of mandate (+13 mn uninsured) covers another $50 billion and is surely more regressive.

Ways and Means confirms they wrote a loophole for owners (like Trump!) in state/local ded limit but JCT says "???" medium.com/@kamin_83016/a… Ways and Means in statement confirmed that they intend for there to be a loophole for biz owners/investors allowing them to take the ded.

How a touted House tax cut for middle class fam becomes a tax increase. By 2027, fam, 2 kids, 59K, tax inc of $500 medium.com/@kamin_83016/h… House Republicans touted this example family and tax cut in 2018. But, goes away over time and reverses. Contrast to perm tax cuts for top.