OTPR NEWS

The Office of Tax Policy Research, The Concord Coalition, and Concerned Youth for America are sponsoring a showing of I.O.U.S.A. – The Movie.

Thursday, December 4, 6:30 – 9:00 p.m.
Palmer Commons Forum Hall

ECONOMIC ISSUES IN THE CAMPAIGN
HEALTH CARE, TAXES, TRADE, AND
THE FINANCIAL CRISIS

October 14, 2008
Palmer Commons, Great Lakes South Central Room, 4^th Floor
4:15 – 6:00 p.m.

Faculty, staff, and students attended a recent presentation sponsored by the Office of Tax Policy Research on the hottest economic issues facing voters this year– health care, taxes, trade, and, of course, the housing/financial crisis. Members of the University faculty who critiqued the candidates’ proposals and offered their own views on the issues included:

Thomas Buchmueller, Waldo O. Hildebrand Professor of Risk Management and Insurance; Professor of Business Economics and Public Policy   James Levinsohn, J. Ira and Nicki Harris Family Professor of Public Policy, Professor of Public Policy, Professor of Economics   Joel Slemrod, Paul W. McCracken Collegiate Professor of Business Economics and Public Policy, Professor of Economics, Director, Office of Tax Policy Research   Robert Van Order, Adjunct Professor of Finance, Former Chief International Economist, Freddie Mac.

NEW RESEARCH -- INCOME TAX NONCOMPLIANCE BY INCOME GROUP

New research by OTPR Director Joel Slemrod and IRS employee Andrew Johns looks at income tax noncompliance by income group.  It makes use of newly available data for tax year 2001 from the IRS’s most recent comprehensive study of individual income tax noncompliance, the National Research Program.  The study finds that, when taxpayers are arrayed by their “true” income, defined as reported income adjusted for the underreporting estimated by the IRS tax gap methodology, the ratio of aggregate misreported income to true income generally increases with income, although it peaks among taxpayers with adjusted gross income between $500,000 to $1,000,000, and is lower than the peak ratio for individuals with income above $1,000,000.  In sharp contrast, though, the ratio of underreported tax to true tax is highest for lower-income taxpayers.  This contrast in results reflects the fact that under a graduated tax schedule a given percentage reduction in taxable income corresponds to a higher percentage reduction in tax liability the lower is a taxpayer’s income.  Much, but not all, of the distributional pattern of noncompliance is related to the fact that on average high-income taxpayers receive their income in forms that have higher noncompliance rates.  To view this paper, please click here.

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In November of each year, the National Tax Association holds its annual conference; this year celebrating its 100th anniversary. One of the highlights (for OTPR attendees) is the annual dinner, where current and former OTPR-affiliated students and faculty gather to meet and reminisce.

OTPR Press Citations • “IRS Targets Billionaire's” Wall Street Journal, June 9, 2008 • “Tax Havens in U.S. Cross Hairs” Christian Science Monitor, June 9, 2008 • “Stimulus Hopes Misplaced: Ailing Economy Has Spending Spree Unlikely” Atlanta-Journal Constitutional, May 15, 2008 • “Tax Rebates in $168 Billion Stimulus Plan Begin Arriving in Bank Accounts” New York Times, April 29, 2008 • “McCain Says Tax, Spending Cuts Needed To Boost Economy” The Frontrunner, April 18, 2008 • “State of Taxation 2008: Taxing Consumption” Congressional Quarterly Weekly, April 13, 2008 • “State of Taxation 2008: The Case for a Broader Base” Congressional Quarterly Weekly, April 13, 2008 • “These May Be the Good Old Days for Taxpayers: Economists Predict Increasing Tax Rates” Associated Press, April 11, 2008 • “For Small Businesses, Just Filing Taxes Is a Costly Burden” Business Intelligence, April 11, 2008 • “Small Businesses and the Tax Code” Finance Wire, April 10, 2008 • “Gwinnett Opinions: Teen Failed the Real Test” The Atlanta Journal-Constitution, April 4, 2008 • “Democrats and Tax Policy” Las Vegas Review - Journal, March 17, 2008 • “Fortune Favors Hard Work and Enterprise, Usually” Wall Street Journal, March 8, 2008 • “The New Forbes Billionaire List” CNBC, TV Interview, March 6, 2008 • “Taxes You Pay Now May Represent the ‘Good Old Days’” Newhouse News Service, February 28, 2008 • “U.S. Retail Holds Its Breath for Tax Boost” Financial Times, February 19, 2008 • “Before Rebate Checks Hit the Mail, Deals Surface” Plain Dealer, February 19, 2008 • “UM 2002 Tax Rebates Study” San Jose Mercury News, February 15, 2008 • “Bush Ready to Sign Rescue Package with Rebate Checks for Individuals, Tax Relief for Business” Associated Press, February 13, 2008, • “Rebate Is Congress’ Overreaction to Economic Slowdown” South Bend Tribune, February 13, 2008 • “How People Use Tax Rebates” National Public Radio, Media Broadcast Hit, February 11, 2008 • “Ga.’s Stimulus Estimate; $3.6 Billion: Rebates Checks Could Be an Economic Shot in the Arm – If They’re Spent and Not Socked Away” Atlanta Journal-Constitution, February 9, 2008 • “Spending the Tax Rebate: Will It Help?” Chico Enterprise-Record, February 9, 2008 • “Tax Rebates” National Public Radio – Marketplace, February 8, 2008 • “Spending Rebates Is Not Likely” San Francisco Chronicle, February 5, 2008 • “‘Miss America Effect’ Is Homegrown Stimulus” Grand Rapids Press, February 4, 2008 • “Forget Rebate Checks, Send Gift Cards Instead” Buffalo News, February 3, 2008 • “Rebate Psychology” New York Times, January 31, 2008