The Office of Tax Analysis is divided into five divisions: the Business and International Taxation Division , the Economic Modeling and Computer Applications Division , the Individual Taxation Division , the Revenue Estimating Division , and the Receipts Forecasting Division .
The Business and International Taxation Division develops and analyzes tax policies affecting businesses and international taxation. The Division provides economic analyses and conducts research on tax provisions affecting corporations, partnerships and other unincorporated businesses, financial institutions and products, and energy and the environment, including taxes on income, consumption, and capital income, and business excise taxes. In recent years, the Division has devoted substantial attention to analyzing corporate tax shelters, depreciation allowances, integration of corporate and personal income taxes, and options to simplify and reform business taxation. The Division also analyzes and researches the taxation of both income earned outside the United States by U.S. citizens, residents, and domestic corporations and income earned within the United States by foreign corporations and nonresidents. Along with the Office of the International Tax Counsel , the Division engages in tax treaty negotiations with foreign governments and participates in meetings of international organizations. The Division works closely with the Office of the Tax Legislative Counsel to develop legislative proposals and regulations.
The Economic Modeling and Computer Applications Division develops and maintains several major simulation models which are used to provide estimates and analyses of changes in current or proposed tax legislation. Currently, there are five major production modeling systems: the individual income tax model, the corporate tax model, the corporate panel model, the depreciation model, and the estate tax model. Other specialized modeling systems include the corporate receipts model, the banking model, the life insurance calculator, the capital gains panel study, and the collation of estate and income tax returns. Results from these modeling systems are used in mandated studies, official testimony, the Federal budget, and other economic analyses. Considerable time and effort is spent by the Division in developing new data sources and improving simulation methodologies to meet Office of Tax Policy needs.
The Individual Taxation Division develops policy proposals and provides analysis of the impact of existing and proposed individual income tax provisions on economic activity and welfare, marginal tax rates, and the distribution of the tax burden among families. Policy issues include the structure of tax rates, the tax treatment of different types of families, savings incentives, the tax treatment of pensions and health insurance, education incentives, tax-exempt bonds, and income tax compliance. The Division also is responsible for policy development and analysis of payroll taxes, excise taxes, estate and gift taxes, and nonprofit organizations.
The Receipts Forecasting Division provides the official Administration forecasts of all Federal receipts included in the President's Budget and Mid-Session Review. Monthly receipts forecasts are provided to the Office of the Fiscal Assistant Secretary for use in determining the timing and size of government borrowing and for determining the amounts to be deposited into many federal trust funds. The division also produces estimates of revenue changes associated with tax proposals closely associated with receipts forecasts, such as forms of payment, and with trust fund management, such as the highway excise taxes and the federal unemployment insurance taxes.
The Revenue Estimating Division estimates the revenue consequences of all the Administration's legislative tax proposals and major Congressional tax proposals. The revenue estimates are used to evaluate the tax proposals and to assist in determining Administration policy positions on the proposals. Because the staff is responsible for revenue estimates for business, estate and gift, excise, individual and payroll tax proposals, they work closely with the other divisions in developing Treasury tax proposals or responding to Congressional proposals in these areas. The division also is responsible for estimates included in the Tax Expenditures section of the President's Budget. |
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Tax Policy Offices
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