Research report

This paper evaluates six options to achieve across-the-board reductions to a group of major exclusions and deductions in the income tax: (1) limiting their tax benefit to a maximum percentage of income; (2) imposing a fixed dollar cap; (3) reducing them by a fixed-percentage amount; (4) limiting...

February 5, 2014
Eric Toder, Joseph Rosenberg, Amanda Eng
Research report

Both political parties are calling for corporate tax reform without agreement on specifics. Proposals to broaden the corporate tax base to pay for lower rates or to eliminate taxes on corporate repatriations while trying to prevent income shifting do not address the main problems of taxing...

January 27, 2014
Eric Toder
Research report

This Tax Fact documents the increasing share of flow-through business income as a percentage of adjusted gross income (AGI) reported on individual income tax returns. In 2012, net income from sole proprietorships, partnerships, and S corporations totaled nearly $840 billion and accounted for...

September 29, 2014
Joseph Rosenberg
Research report

Government directs a large amount of resources toward helping families build assets in the form of home equity, retirement savings, human capital, and business ownership. This Tax Fact summarizes the cost of different asset-building tax subsidies. These tax expenditures total to more than $370...

August 20, 2014
C. Eugene Steuerle, Caleb Quakenbush
Research report

Errors in the formulas for computing payroll tax for the self-employed result in their paying less payroll taxes than workers with the same earnings. All self-employed workers benefit from these errors, but those with high earnings benefit disproportionately. A provision in Ways and Means...

July 1, 2014
James R. Nunns
Research report

The tax code limits the extent to which individuals may take advantage of the tax benefits associated with traditional and Roth IRAs. The only eligibility criteria for contributing to a Roth IRA are income and filing status. In contrast, eligibility for deducting contributions to a traditional...

March 7, 2008
Benjamin H. Harris, Christopher Geissler
Research report

Taxpayers routinely have too much income tax withheld. Of the 126 million tax returns the IRS processed through April 17, 2015, almost three-quarters resulted in a refund. The average refund was $2,711 with higher average refunds going to the earliest filers.

June 9, 2015
Elaine Maag, Elena Ramirez
Research report

Education expenditures are one of the largest spending areas for state and local governments, and perpupil expenditures have been growing over time. We examine trends in state aid for education and overall education spending and decompose the existing drivers behind growing state costs. We then...

January 23, 2008
Sheila Murray, Kim S. Rueben, Carol Rosenberg
Research report

This report tracks the lifetime earnings of men born in the U.S. between 1940 and 1974, focusing on how earnings differences by educational attainment, age, and year of birth have evolved. Both annual and lifetime earnings inequality increased dramatically for men born in the mid-1950s onward....

April 7, 2014
Josh Mitchell
Research report

Although our tax code contains incentives for charitable giving, numerous impediments weaken these incentives or add undue complexity, contrary to the underlying principle. Many of these impediments also create significant complications for the taxpayer, the charitable sector, and the IRS itself...

May 1, 1995
C. Eugene Steuerle