William G. Gale Journalist Profile

Articles

Cut taxes or save Social Security? The $5 trillion question

2 months ago | brookings.edu | William G. Gale |Samuel I. Thorpe

We live in a world of trade-offs, and a looming debate in Washington will decide how trillions of dollars in government cash is spent. Republican lawmakers and President Donald Trump are eager to make permanent the provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 that expire at the end of this year. This would prove quite expensive—according to the non-partisan Congressional Budget Office, it would raise deficits by more than $5 trillion through 2035.
How much did TCJA raise investment?

Jan 13, 2025 | brookings.edu | William G. Gale

The Tax Cut and Jobs Act (TCJA) of 2017 aimed to increase business investment by cutting costs for business. Indeed, the legislation has been routinely described as having created the largest business tax cut in the nation’s history. It cut the top corporate tax rate from 35% to 21%, cut the top rate for many non-corporate businesses from 37% to 29.6%, and temporarily allowed firms to deduct the entire cost of certain investments as a current expense rather than depreciating it over time.
Framing the upcoming tax debate: 5 issues, 4 paths

Nov 25, 2024 | brookings.edu | Ian Berlin |William G. Gale

Federal tax policy will take center stage next year, with Republican President-elect Donald Trump leading a unified government and many provisions of the Tax Cuts and Jobs Act (TCJA) expiring at the end of 2025. But five issues will shape the tax debate, leaving lawmakers with four possible scenarios. Over the next 10 years, the Congressional Budget Office (CBO) projects federal debt—which currently stands at 99% of GDP—will rise to 122% of GDP, an all-time high.
Four Things to Watch for in the Corporate Tax Debates

Nov 21, 2024 | aei.org | Kyle Pomerleau |William G. Gale

By Kyle Pomerleau and William G. GaleWith President Trump’s reelection and Republican control of both the Senate and House of Representatives, tax policy will be back in the news. A top priority for Republicans will be extending the individual income tax and estate tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA), almost all of which expire at the end of 2025. But corporate tax changes may not be far behind.
How does Congress react to budget deficit projections?

Nov 19, 2024 | brookings.edu | Alan Auerbach |Janice Eberly |William G. Gale |Jón Steinsson

Fiscal deficit projections are used by policymakers to understand the trajectory of U.S. debt. Between 1984 and 2003, Congress was responsive to these projections, raising taxes and cutting spending when projections showed that the deficit would grow. However, since 2004, fiscal policy has ceased being responsive to debt projections regardless of the party in power.
Are There Better Ways to Tax the Rich?

Nov 18, 2024 | aei.org | Kyle Pomerleau |William G. Gale |Ian Berlin

By Kyle Pomerleau, William G. Gale, and Ian BerlinAt the end of 2025, the individual provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) will expire unless Congress acts. Since the law’s passage, criticism has centered on how the law disproportionately reduced taxes for high-income households. Thus, there is good reason to think that any tax bill that addresses these provisions will have to grapple with the broader question of how best to tax high-income households.
Taxing the wealthy in fair and efficient ways

Nov 18, 2024 | brookings.edu | Ian Berlin |William G. Gale |Kyle Pomerleau

Editor's note: This Policy Brief is based on an article entitled “Efficient and Equitable Income Taxation of the Affluent,” published in Tax Notes, November 18, 2024. Tax policy discussions regarding the wealthy typically focus on how much affluent households should pay relative to other households.
Are there better ways to tax the rich?

Nov 18, 2024 | brookings.edu | Ian Berlin |William G. Gale |Kyle Pomerleau

At the end of 2025, the individual provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) will expire unless Congress acts. Since the law’s passage, criticism has centered on how the law disproportionately reduced taxes for high-income households. Thus, there is good reason to think that any tax bill that addresses these provisions will have to grapple with the broader question of how best to tax high-income households. We address these issues in a new paper in Tax Notes and a short policy brief.
Taxing the Wealthy in Fair and Efficient Ways

Nov 18, 2024 | aei.org | Kyle Pomerleau |William G. Gale |Ian Berlin

By Kyle Pomerleau, William G. Gale, and Ian BerlinEditor’s note: This Policy Brief is based on an article entitled “Efficient and Equitable Income Taxation of the Affluent,” published in Tax Notes, November 18, 2024. Tax policy discussions regarding the wealthy typically focus on how much affluent households should pay relative to other households.
Fact-checking Donald Trump's spin on tax cutes raising revenues

Oct 16, 2024 | post-gazette.com | D'Angelo Gore |Lori Robertson |William G. Gale

Former President Donald Trump is proposing to lower the federal corporate tax rate to 15%, insisting that when he lowered it to 21% starting in 2018, revenues received by the government actually went up due to economic growth it spurred. Economists say that’s not what happened. They say that while cutting the rate from 35% to 21% did stimulate some growth, it did not cover the loss in tax revenue.