Research on Sustainability of the U.S. Federal Income Tax with theTaxing and Spending Integration Perspective

点击翻译按钮获取中文摘要

In this research, we analyzed the erosion of tax base of the U.S. federal income taxation after Tax Reform Act of 1986, with the dual taxing and spending integration perspective; the integration of policymaking process and the one of various economic and social policies. We have gotten the following results: First, in the policymaking perspective, introducing the reconciliation process, settled in the Congressional Budget Act of 1974 and activated after 1980s, has gone on with the incremental erosion of the tax base. Ironically, macro-budgeting framework to strengthen the fiscal norm has encouraged various political transaction, and has led to the tax base erosion. Second, in each policy dimension, though the deduction for pension and health insurance have been huge, following two tax preferences have been the main policy issues: Tax credit for income security, like as EITC, and tax preference for investments, like as mortgage deduction and capital gain taxation.