Evaluates the budget savings potential of options to reduce federal student loan program costs, especially denying certain students access to loans. Rationing that targets low-risk students (those who will likely attend schools that do not have a federal loan guarantee) has the greatest cost...

The Internal Revenue Service has held that the section 115 exclusion from taxation of the gross income state and local governments earn from public utilities or from the exercise of any "essential governmental function" applies to any income that accrues to them. This provides an incentive for...

Discusses why tax-exempt bonds remained untouched for the first fifty-four years of the income tax. Describes the factors responsible for the decision that too much money was being spent to subsidize industrial development bonds at the expense of governmental or public-purpose bonds.

Suggests that the market conditions that produce nonprofit firms are no guarantee that social benefits are produced by nonprofit firms. Discusses a selection of some of the available empirical information that documents some nonprofit failure and abuse as well as proposed legislation that...

Bruce Davie was the authority on the economics of state and local bonds whose interest income is excluded from federal income taxation (by section 103 of the Internal Revenue Code). Beginning with his dissertation in 1963 and continuing to his untimely death in 2003, he accumulated vast...

This article uses marginal tax rate analysis to simulate the effect of our complex system of capital income taxation on of tertax returns by asset type and on tax progressivity. Preferential taxation is found to favor higher income individuals, causing returns to decline less steeply across the...