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Effects of a State Gasoline Tax Holiday
We provide causal evidence that recent suspensions of state gasoline taxes in three states were mostly passed onto consumers at some point during the tax holiday in the form of lower gas prices: Maryland (72 percent of tax savings passed onto consumers), Georgia (58 percent to 65 percent) and Connecticut (71 percent to 87 percent). However, these price reductions were often not sustained during the entire holiday.
Total Cost of Universal Pre-K, Including New Facilities
We estimate that each new preschooler for a universal pre-K program requires about $21,000 in new construction costs for facilities expansion. Including non-construction costs, a universal pre-K program for three- and four-year-olds will cost about $351 billion over the 10-year budget window. If made permanent after 10 years, this program will have essentially no impact on long-run GDP. A pre-K program for just four-year-olds reduces the 10-year cost to $196 billion and slightly increases long-run GDP, if that program is made permanent.
Why Taxpayers Owed $500 Billion in Taxes When They Filed This Year
Households owed more than $500 billion in taxes when they filed their returns this year, an increase of about $200 billion from immediately prior to the pandemic. The large tax liability owed at filing is mostly the result of a surge in capital gains and other income from financial assets in 2021.
President Bidenâs FY2023 Budget Proposal: Budgetary and Economic Effects
We project that President Bidenâs FY2023 Budget, taken as a whole, would reduce debt and grow the economy by 0.4 percent over time, with two major components of the Budget---"Build Back Betterâ and âNew Provisionsâ---working in opposite directions.
Analysis of Carbon Emission Reductions in Build Back America
Build Back Better (BBB) Act allocates about $550 billion to climate change policies. Provisions that are funded with user fees can grow the economy while deficit financing can shrink the economy.
Effects of a Federal Gas Tax Holiday
We estimate that suspending the federal gas tax from March to December 2022 would lower average gasoline spending per capita between $16 and $47, depending on geographic location and assumptions, but lower federal tax revenue by about $20 billion over that period.
Projecting Medicaidâs Long Term Care Expenditures
PWBM estimates that Medicaidâs inflation adjusted expenditures on Long Term Care services will increase from $130 billion in 2020 (0.62 percent of GDP) to $179 billion in 2030 (0.71 percent of GDP). We project that Medicaid expenditures on Nursing Home and Home Health will increase 4.7 percent and 6.9 percent per year above inflation through 2030, respectively.
Capital Gains Taxation and Deferral: Revenue Potential of Reform
This brief examines different approaches to removing the capital gains âlock-in effectâ within a realization-based tax framework. We estimate that this change would produce between $115 billion and $357 billion in additional tax revenue over the next 10 years, depending on the exact design.
