Posts about Lillian Mills
Marital bliss can come at a cost when tax laws place higher rates on the combined incomes of married couples than they do on single individuals earning the same amount. McCombs professor Lillian Mills explores this concept in a simplified theoretical example brought to life through the scribble-tastic magic of LINGO.
As 2012 ticks down to its final days, it’s not just buffs of the Mayan calendar who fear the end of the world as we know it. Assuming doomsday does not arrive Dec. 21, the nation could face another apocalyptic scenario just 11 days later. Some economists call it Taxmageddon and others the Fiscal Cliff — a half-trillion-dollar smorgasbord of expiring tax cuts, along with benefit and budget cuts, that start kicking in on New Year’s Day. They warn it could topple the U.S. economy back into recession.
It's been a year since Warren Buffett penned a New York Times op-ed calling for higher taxes on millionaires like himself. Since then, the issue has become a potent political symbol. But is Buffett's proposal economically sound, or is it merely a gimmick?
Confusion, avoidance, loopholes, manipulation. The current state of American corporate income tax evokes all these words and more. By one measure, U.S. companies pay the highest corporate tax rates in the industrialized world: 39.2 percent, versus an average of 25.4 percent. But by other measures, they pay some of the lowest amounts. In 2009, corporate taxes were 1.7 percent of America’s gross domestic product, compared to an industrialized average of 2.8 percent. The tax contributes a scant 8 percent of Uncle Sam’s revenues. “It’s a small percentage, and we’re spending a lot to avoid it,” says Sandy Leeds, senior lecturer in finance at McCombs.
As the federal income tax nears its 100th birthday, the revenue source is being reconsidered in light of alternative ideas. Several tax and finance experts at the University of Texas at Austin suggest that the U.S. consider a parallel tax system: a national consumption tax.
When it comes to taxes, many Americans believe they’re paying too much and/or someone else is not paying enough. Who's right?
Lillian Mills explains where the chunk of money missing from your paycheck goes.
Tax maestro Lillian Mills discusses the question of whether a flat tax is simpler or more fair than our current progressive tax system.
Tax maestro Lillian Mills sheds light on the IRS's practice of giving businesses credit for the taxes they pay to other countries.
Accounting guru Lillian Mills dispels the myth that graduating to a higher tax bracket decreases your income.