Newsletter Archive

November 2, 2006

The Tax Policy Center Newsletter

Tax Policy Facts and Figures

October 23, 2006

The early years of the 21st century have been marked by a major tax bill almost every year. This fact sheet looks at the impact of these laws on taxpayers, especially on who benefits and who doesn't, and discusses some unfinished business, including the future of the estate tax and the individual alternative minimum tax.

Link to Tax Policy Facts and Figures

Distribution of the 2001 - 2006 Tax Cuts

November 2, 2006

The Tax Policy Center has estimated how the tax cuts enacted since 2001 affect the distribution of tax burdens in 2006 and in 2010 (when the tax cuts are fully phased in). Although most families gain directly from the tax cuts, they increase the deficit and will eventually have to be offset. We examine three scenarios to finance the deficits: lump-sum financing (or spending cuts that affect all families about the same), taxes proportional to income, and taxes proportional to income taxes (e.g., an income tax surcharge). Including the effects of financing can change the picture dramatically. Under the first two scenarios, most households end up worse off, with the largest gains at the top and bottom of the income distribution. Under the third scenario, middle-income households come out ahead while others pay higher taxes than if the tax cuts had not been enacted.

Link to estimates and explanation

State and Local Finance Data Query System

The SLF-DQS allows for the flexible presentation of data from the Census of Governments State and Local Finance series. It contains detailed revenue, expenditure and debt variables for the United States, each of the 50 states and the District of Columbia for 1977-2004. The data are available by type of government: state, local, state and local totals, and local government detail. All data presented is state aggregates of finance data for the selected level of government. The user can view the data on different dimensions, on a real or nominal basis, and on a per capita or fraction of personal income, general revenues or total expenditures basis. This tool is useful for comparative, single state, or time series analysis.

Link to SLF-DQS

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