Dr. Seth Giertz, assistant professor of economics, recently wrote an article that appeared on
The Hill's Congress Blog. The article looked at the upcoming fiscal cliff dilemma and the frictions that go along with gridlock in trying to get things solved in Congress.
Giertz and co-author Dr. Jacob Feldman of George Mason University, looked at the consequences of recent trends in Washington to create laws with more uncertainty, such as tax rates that expire at a given date. They believe this uncertainty often has negative repercussions throughout the economy.
The article also stresses the need for new tax reform similar to the Tax Reform Act of 1986. Additionally, they note the need to set new policies that do not allow for constant amending of the tax code over time, which could end up creating the same complications we face today.
In a related ABC News article, Giertz, who co-wrote the Congressional Budget Office's May 2011 analysis of options for the charitable giving deduction, talked about how certain tax exemptions need to be handled cautiously.
"It's probably not going to hurt a whole lot," Giertz told ABC News with regard to eliminating the charitable giving deduction. "But it's probably more likely to hurt certain charities that some really high income people give money to." Universities are one charitable contribution which Giertz said might be hurt by a change in the tax law.
Published: December 4, 2012