American Taxpayer Research Articles

The Biofuels Tax Credit.

The American Taxpayer Relief Act of 2012 (“Taxpayer Relief Act”)1 extended various expired federal tax credits for biofuels production2 and created new federal tax credits for algae fuel production from qualified feedstock. The previously available tax credits for cellulosic ethanol production and accelerated depreciation for cellulosic biofuel refineries for biodiesel production expired on December 31, 2011, and the cellulosic biofuels credits expired on December 31, 2012. Previously, proposed bills including extension packages failed to pass in 2012, but the Taxpayer Relief Act, passed in early January 2013, finally extended these credits for the next year until 2014.

Electric Regulation: Renewable Incentives Have Led to Job Creation

AbstractJob creation appears to be priority number one for the Obama administration in its second term, and investments in renewable electricity infrastructure are seen as a means to achieve this goal while also meeting social concerns about the environment. In order to continue federal government support for these investments, the American Taxpayer Relief Act of 2012 extended the production tax credit (PTC) for utility‐scale wind farms.

Health Policy and the American Taxpayer Relief Act

Health Policy and the American Taxpayer Relief Act

The Fundamentals of Wealth Transfer Tax Planning: 2013 and Beyond

On January 1, 2013 Congress avoided the tax part of the so called “fiscal cliff” when it passed the American Taxpayer Relief Act of 2012 (ATRA). Among its many impacts this law prevented the application of a number of sunset provisions that would have dramatically altered the operation of the federal wealth transfer taxes. Instead Congress made permanent two significant transfer tax provisions introduced as temporary measures in 2010: the indexed basic exclusion amount and the deceased spousal unused exclusion amount. The latter provisions are sometimes referred to as the portability rules. ATRA also introduced a new maximum transfer tax rate of 40%. In addition ATRA made permanent a deduction for state death taxes and prevented the return of the state death tax credit. Thus, the main transfer tax emphasis of the actions taken by Congress in ATRA was to stabilize the wealth transfer tax system in a fashion that eliminates or reduces its planning impact on most taxpayers while also permanently establishing a significant new planning tool for the wealthy, the deceased spousal unused exclusion (DSUE) amount. In this article we summarize the operation of the federal wealth transfer taxes in the wake of ATRA and describe the basic tax planning techniques for wealth transmission. In doing so, we offer a thorough analysis of the operation of the portability rules and discuss their planning virtues and drawbacks. The overall design of this article is to bring the general practitioner into the current wealth transfer tax planning picture while providing references to more detailed treatments of particular topics within this broad field.

‘Fiscal Cliff’ Deal Halts SGR Cut—For Awhile

‘Fiscal Cliff’ Deal Halts SGR Cut—For Awhile

Corporate and International Tax Reform: Proposals for the Second Obama Administration (and Beyond)

This paper presents some long, medium and short-term proposals for corporate and international tax reform in the wake of the passage of the American Taxpayer Relief Act of 2012.

The Big Question: Which Country Will Emerge as the Leading Power?

The Big Question: Which Country Will Emerge as the Leading Power?

The Final End of the Final Frontier?

The elections have now passed, but the planetary exploration effort of the United States remains anything but settled. Deadlocks remain, with a continuing resolution in place through next March, no relief in sight for sequestration to be averted, and the $309 million cut in planetary exploration for the proposed fiscal year 2013 (FY2013) budget already in play. The proposed FY2014 level in the President's FY2013 budget release mandates an additional cut of $58.6 million on top of the already precipitous drop from the FY2012 budget numbers to those of FY2013. The potential for planetary exploration is a drop of about $370 million in 2 years, a decrease of one-quarter of the total planetary exploration program, with further cuts slated for FY2015 ([ 1 ][1]). NASA currently accounts for a nearhistorical low of 0.46% of the U.S. government budget ([ 2 ][2]). After 50 years of robotic planetary exploration, we know the high cost of space exploration, robotic and human. Doing worthwhile things is not cheap, but slashing budgets in opposition to long-term national goals is a policy error. These NASA dollars enable activities in space but are spent on the ground. NASA funding has led to advances in electronics, robotics, and aeronautics. Space-based, scientific investigation of Earth's resources and climate are of increasing importance. And of course, the money goes toward salaries for high-wage, high-skill jobs. NASA has time and again delivered the best value per dollar back to the American taxpayer, providing new knowledge and understanding that we can all be proud of as a joint American undertaking. The return on investment, in our current quality of life, in future generations, and in the achievements of our country has been immense. We urge the Administration, the White House, the Office of Management and Budget, and Office of Science and Technology Policy, along with both houses of Congress and both political parties, to deal with the current imbroglio and work together to continue the nation's investment in our successful program of solar system exploration. Even in tight budget times, the return is well worth the price. 1. [↵][3] FY 2013 Complete Budget Estimate at NASA, Budget Documents, Strategic Plans and Performance Reports, p. BUD-3 ([www.nasa.gov/news/budget/index.html][4]). 2. [↵][5] Office of Management and Budget, Historical Tables, Table 4.1: Outlays by Agency: 1962–2017 ([www.whitehouse.gov/omb/budget/Historicals][6]). [1]: #ref-1 [2]: #ref-2 [3]: #xref-ref-1-1 View reference 1 in text [4]: http://www.nasa.gov/news/budget/index.html [5]: #xref-ref-2-1 View reference 2 in text [6]: http://www.whitehouse.gov/omb/budget/Historicals

The price of Cherokee removal

In this paper, we estimate the social costs and income transfers of Cherokee removal, i.e., “The Trail of Tears.” Our cost estimates provide several new insights into this extensively studied topic. First, our estimate of the number of removal-related fatalities is considerably lower than the commonly accepted figure of 4000. Second, the uncompensated value of ceded Cherokee land in the southeast was the largest cost borne by the Cherokees, followed in magnitude by the value of lost agricultural output due to removal. Third, American taxpayers paid for roughly 44% of the total social costs of removal. Also, the cost burden of Cherokee removal, as a share of 1year's GDP, was greater for the Cherokees than the cost burden of any major war for the American population.

The Donkey Kong King and I

The Donkey Kong King and I

Political Influence and TARP: An Analysis of Treasury's Disposition of CPP Warrants

AbstractI investigate one mechanism through which financial institutions could have used political influence to receive preferential treatment in the US Department of the Treasury-administered “bailout.” I find that neither proxies of political influence nor other political variables, such as public interest in specific deals, can explain variance in the sale price of warrants (a type of financial asset) Treasury acquired through TARP's Capital Purchase Program. Moreover, I find that the more politically active the firm is, the more likely Treasury is to auction its warrants (thereby receiving fair market value). This conclusion is not consistent with recent studies investigating the role of such variables in the initial administration of TARP and can be interpreted as good news for American taxpayers.

The Great Recession: Some Niebuhrian Reflections

The Great Recession: Some Niebuhrian Reflections

Groups Want Liability Reform Included in Budget Debates

Back to table of contents Previous article Next article Government NewsFull AccessGroups Want Liability Reform Included in Budget DebatesMark MoranMark MoranSearch for more papers by this authorPublished Online:4 Nov 2011https://doi.org/10.1176/pn.46.21.psychnews_46_21_6_1AbstractAPA joined the AMA and more than 50 medical specialty groups as well as state medical societies in urging the special congressional committee charged with devising a deficit reduction plan to include medical liability reform in its proposals. In separate October 3 letters, APA and the other medical groups told the cochairs of the Joint Select Committee on Deficit Reduction (often called the "supercommittee") that medical liability claims and the high cost of liability insurance for physicians contribute significantly to increasing costs in publicly funded health programs. "The inefficiencies of our current medical liability system, escalating and unpredictable awards, and the high cost of defending against lawsuits, including those without merit, contribute to the increase in medical liability insurance premiums and add billions of dollars to the cost of health care each year—which means higher government spending on Medicare, Medicaid, and other federal health benefits programs and higher health insurance premiums for patients," they said.The supercommittee cochairs are Sen. Patty Murray (D-Wash.) and Rep. Jeb Hensarling (R-Texas). It was established in the budget deal to which Congress agreed in August following a showdown over raising the debt ceiling. The 12-member committee—consisting of six members (three Democrats and three Republicans) from both the House and the Senate—was charged, as part of the budget deal, with determining how various federal programs will be cut and how the deficit will be reduced. "Regular" standing committees of Congress were required to recommend total savings and/or possible revenues of $1.5 trillion by October 15, and the Joint Select Committee must in turn vote on a package of savings/revenues by November 23 and report out a bill to the House and Senate by December 2. If the Joint Select Committee fails to act, or if Congress or the president fails to approve what the committee recommends, then "automatic sequestration"—mandatory cuts—will go into effect that must achieve $1.2 trillion in savings from defense and nondefense funding over 10 years (Psychiatric News, August 19). In their letters to the cochairs, APA and the other medical groups said that reforming the liability system will "save American taxpayers billions of dollars while protecting patient access to care." They noted that the Congressional Budget Office has estimated that implementing comprehensive medical liability reforms, including limits on noneconomic damages, would reduce the federal budget deficit by $62.4 billion over 10 years. Additionally, the groups noted, the National Commission on Fiscal Responsibility and Reform (appointed by President Obama) recommended in December 2010 that medical liability reform be part of a solution to reduce the federal budget deficit. APA and the other groups urged a list of specific reforms (see Liability Reforms Recommended by APA and Other Medical Groups) saying they would "save taxpayers money while simultaneously improving our health care and legal systems."The letters are posted at <www.psych.org/MainMenu/AdvocacyGovernmentRelations/GovernmentRelations/MLR-Murray-Letter.aspx> and <www.psych.org/MainMenu/AdvocacyGovernmentRelations/GovernmentRelations/Hensarling-MLR-.aspx>. ISSUES NewArchived

National Security Intelligence in the United States: A Performance Checklist

Policymakers and the American taxpayer alike deserve to know how well their intelligence agencies are performing, especially in light of the fact that the annual bill for their services surpasses $...

Guaranteed to fail: Fannie Mae, Freddie Mac, and the debacle of mortgage finance

The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American taxpayers close to $150 billion, and substantially more will be needed. The U.S. economy--and by extension, the global financial system--has a lot riding on Fannie and Freddie. They cannot fail, yet that is precisely what these mortgage giants are guaranteed to do. How can we limit the damage to our economy, and avoid making the same mistakes in the future?Guaranteed to Fail explains how poorly designed government guarantees for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides sensible, practical recommendations. Despite repeated calls for tougher action, Washington has expanded the scope of its guarantees to Fannie and Freddie, fueling more and more housing and mortgages all across the economy--and putting all of us at risk. This book unravels the dizzyingly immense, highly interconnected businesses of Fannie and Freddie. It proposes a unique model of reform that emphasizes public-private partnership, one that can serve as a blueprint for better organizing and managing government-sponsored enterprises like Fannie Mae and Freddie Mac. In doing so, Guaranteed to Fail strikes a cautionary note about excessive government intervention in markets.

Mobility redux: Post-World War II prosthetics and functional aids for veterans, 1945 to 2010

MARCHING ON THE U.S. CAPITOL: 1945 Protesting World War II (WWII) veterans marched on the U.S. Capitol in Washington, DC, in mid-1945 after the war ended, many defiantly holding their prosthetic legs and arms in the air and shaking them as if wielding clubs and intimidating their enemies--members of the U.S. Congress. Their protests came from the Capitol's gallery, where the veterans gathered to voice their anger about their inferior artificial arms and legs, provided by the lowest-bidding contractor because of prevailing Government regulations. This was the way WWII veteran amputees shouted their message loud and clear: Congress, we have a big problem--one that affects our lives every day--substandard prostheses for us, returning veterans, as compared with higher-quality devices prescribed for civilian amputees. This march of defiance and anger over how they were inadequately treated immediately drew the attention of journalists who reported the plight of the amputees in the Sunday newspapers and supplements. headline stories around the nation informed Americans of the veterans' plight for the first time [1]. No Government agency or process was in place after WWII to fit and provide quality artificial limbs to wounded veterans. In the end, this new awareness by Congress and American taxpayers of veterans' real and urgent problems after returning from battle positively influenced the passage of important legislation for post-WWII veterans. On November 1, 1945, in response to both the angry amputee veterans and Congress, the Veterans Administration established the Prosthetic Appliance Service [2], which would evolve into the Veterans Administration's Prosthetics and Sensory Aids Service (PSAS) in 1948 [3]. FEBRUARY 1945 IN YALTA AND CHICAGO Earlier, in February 1945, just days before Roosevelt, Churchill, and Stalin met at the Yalta Summit, an important meeting took place on the Chicago campus of Northwestern University. Among the attendees was U.S. Army Surgeon General Norman Kirk, an orthopedic surgeon. As a result of this meeting, Dr. Kirk asked the National Academy of Sciences (NAS) to initiate and plan a research and development (R&D) program with the mandate to improve prostheses by applying technology from other specialized fields. This meeting was significant in the history of prosthetics because it marked the start of Federal funding for rehabilitation research. In addition, the Chicago meeting established the fields of science, medicine, and engineering as integral specialty disciplines required to solve the complex problems of restoring mobility to veteran amputees. This point in history is when prosthetic fabrication, traditionally considered a craft, began its future trajectory into the scientific method. National Research Council (NRC), established in 1916 during World War I (WWI), is known as one of the four NASs. NRC again convened after WWII in response to the large numbers of war-injured. NRC then formed the Committee on Prosthetics R&D, which was organized to for and treat the 27,000 U.S. soldiers who lost arms or legs during the battles of WWII. During his WWI service, Dr. Kirk established clinical policies in response to the NRC initiative. goal was to provide the best possible to amputees. After WWI, Kirk also helped establish a network of amputee centers around the nation that provided the specialized that veteran amputees needed. Then in the post-WWII years, he drew on this valuable experience for the unprecedented expansion of hospitals and other centers. The U.S. Army built seven amputation centers under Kirk's leadership, each with the capability to provide up-to-date surgical, medical, prosthetic, and rehabilitative care [4]. GENERAL OMAR BRADLEY ESTABLISHES PROSTHETICS AND SENSORY AIDS SERVICE: 1948 Six months after the Yalta Summit, in August 1945, President Harry S. …

IMPASSE AT MCAS FUTENMA

In 1960, a Japanese prime minister was forced to resign after he committed Japan to an unpopular security relationship with the United States. In 2010, exactly fifty years later, the security relationship with the United States, centered on the stationing of a vast U.S. base complex in Japan, has unseated a prime minister who came to office just last year with an over 70 percent approval rating. In the small southern prefecture of Okinawa, where 75 percent of the U.S. military in Japan is stationed, the continued presence of the unpopular Futenma air base has become a lodestone for Okinawan frustration. High-level talks to remove Futenma from the crowded city of Ginowan have been ongoing since 1996, yet nothing has been accomplished. On 25 April 2010, an estimated 90,000 people rallied in Okinawa and demanded the base be removed from the prefecture completely, and not simply relocated to a location near the city of Nago. This essay attempts to explain Washington's central role in creating the problem and argues that Futenma is an unnecessary burden on the people of Okinawa and on cash-strapped Japanese and American taxpayers.

Taking a Sack: The NFL and its Undeserved Tax-Exempt Status

This is an article about the NFL's tax status with some humor thrown in. Enjoy. I've tried to make it readable. Here's the mandatory roadmap: Part I of this article discusses the NFL’s current tax status. Part II attempts to put the NFL’s tax and antitrust exemption in proper context. Part III analyzes the NFL business model from a critical perspective, asking whether the NFL’s nonprofit staus is deserved. More importantly, Part III begins with a great Dave Barry quote. This piece concludes, more or less, that the NFL should stop blowing smoke up a certain orifice of the American taxpayer and start paying its taxes.

Bad Medicine: A Guide to the Real Costs and Consequences of the New Health Care Law

For better or worse, President Obama's health care reform bill is now law. The Patient Protection and Affordable Care Act represents the most significant transformation of the American health care system since Medicare and Medicaid. It will fundamentally change nearly every aspect of health care, from insurance to the final delivery of care.The length and complexity of the legislation, combined with a debate that often generated more heat than light, has led to massive confusion about the law's likely impact. But, it is now possible to analyze what is and is not in it, what it likely will and will not do. In particular, we now know that:*While the new law will increase the number of Americans with insurance coverage, it falls significantly short of universal coverage. By 2019, roughly 21 million Americans will still be uninsured.*The legislation will cost far more than advertised, more than $2.7 trillion over 10 years of full implementation, and will add $352 billion to the national debt over that period.*Most American workers and businesses will see little or no change in their skyrocketing insurance costs, while millions of others, including younger and healthier workers and those who buy insurance on their own through the non-group market will actually see their premiums go up faster as a result of this legislation.*The new law will increase taxes by more than $669 billion between now and 2019, and the burdens it places on business will significantly reduce economic growth and employment.*While the law contains few direct provisions for rationing care, it nonetheless sets the stage for government rationing and interference with how doctors practice medicine.*Millions of Americans who are happy with their current health insurance will not be able to keep it.In short, the more we learn about what is in this new law, the more it looks like bad news for American taxpayers, businesses, health-care providers, and patients.

Tobacco is Going, Going … But Where?

AbstractTobacco is America's most vilified agricultural product. It is also the eighth most valuable crop in the United States, and its immense economic value and historic depth made it an agricultural cornerstone and a cultural focus in the Upper South. The federal tobacco program limited production and ensured a fair price to growers, helping many small family farms survive at no net cost to the American taxpayer. Kentucky ranks second in tobacco production and is the most tobacco‐dependent state. This paper examines what has happened to tobacco farmers in western Kentucky since the federal tobacco program was terminated in 2004 and its broader implications.