The Urban Institute hosted a discussion Tuesday on tax increases scheduled to take effect in January, including the end of the Bush-era income tax cuts, the payroll tax holiday and hikes on investment income.
A new Tax Policy Center report says that if nothing is done, average marginal tax rates would increase by 5 percentage points on labor income, by 7 points on capital gains, and by more than 20 points on dividends. The tax increases along with more than a trillion dollars in budget cuts, also starting in January, are known as the “fiscal cliff.”
Panelists include: Robert Greenstein, president of the Center for Budget and Policy Priorities and member of President Clinton’s Bipartisan Commission on Entitlement and Tax Reform; Douglas Holtz-Eakin, president of the American Action Forum and former director of the Congressional Budget Office; Donald Marron, former acting director of the Congressional Budget Office; and Diane Lim Rogers, chief economist at the Concord Coalition and former chief economist of the House Budget Committee.
Howard Gleckman, resident fellow of the Urban Institute and editor of the Tax Policy Center’s TaxVox blog, moderates.