The dependent exemption reduces taxable income by a fixed amount ($3,650 in 2010) for each qualifying child in the family. Benefits depend on a family's marginal tax rate. Low-income families receive a tax reduction of up to $365 per exemption compared to high income families that receive a tax...
In the New York Times' Room for Debate, Roberton Williams discusses the estate tax and why, despite its shortcomings, it still has an important role in federal tax policy.
This article examines the economic benefits of alternative minimum tax reform relative to the current policy baseline. The authors find that AMT reform can lead to improved progressivity, greater efficiency, and a lessened compliance burden while raising an equal amount of revenue.
Complexity plagues the tax code for low-income families, particularly with regard to child related credits. Many analysts advocate separating out the essential functions of these credits: subsidizing work, subsidizing children, and subsidizing specifi c activities such as child care. This paper...
Provisions in the tax law that benefit families with children include the child tax credit, personal exemptions for dependent children, the earned income tax credit, availability of head of household filing status, the child and dependent care credit, and tuition tax credits and deductions for...
The debate over extending the 20012003 tax cuts beyond 2010 has revolved around two options: extend all provisions for all taxpayers, and the presidents proposal to extend all provisions except those that apply only to high-income taxpayers. A third option has drawn attention: extend the...
We present new estimates of the budget outlook, based on the latest projections from the Congressional Budget Office and the Medicare and Social Security Trustee reports. The medium-term budget outlook has not changed appreciably since earlier this year. Under reasonable assumptions, the federal...
In a point-counterpoint with Henry Aaron, senior fellow at the Brookings Institution, Eugene Steuerle discusses five pressing fiscal problems facing America, and suggests tax and budget reform options to address these issues. This discourse includes agreement and disagreement, yet is honestly...
In commentary for the San Francisco Chronicle, Gene Steuerle asserts that all of the following myths about Social Security retirement ages are wrong: (1) increasing the retirement age will reduce benefits; (2) increasing the retirement age discriminates against lower-income workers with shorter...
The U.S. faces a large medium-term federal budget deficit and an unsustainable long-term fiscal gap. Left unattended, these shortfalls will hobble and eventually cripple the economy. The only plausible way to close the gap is through a combination of spending cuts and/or tax increases. This...
Who Benefits From the Dependent Exemption?
The dependent exemption reduces taxable income by a fixed amount ($3,650 in 2010) for each qualifying child in the family. Benefits depend on a family's marginal tax rate. Low-income families receive a tax reduction of up to $365 per exemption compared to high income families that receive a tax...
It's Not About Economic Equality
In the New York Times' Room for Debate, Roberton Williams discusses the estate tax and why, despite its shortcomings, it still has an important role in federal tax policy.
Alternative to the Alternative: The Economic Effects of AMT Reform
This article examines the economic benefits of alternative minimum tax reform relative to the current policy baseline. The authors find that AMT reform can lead to improved progressivity, greater efficiency, and a lessened compliance burden while raising an equal amount of revenue.
Simplicity: Considerations in Designing a Unified Child Credit
Complexity plagues the tax code for low-income families, particularly with regard to child related credits. Many analysts advocate separating out the essential functions of these credits: subsidizing work, subsidizing children, and subsidizing specifi c activities such as child care. This paper...
Tax Savings From an Additional Child
Provisions in the tax law that benefit families with children include the child tax credit, personal exemptions for dependent children, the earned income tax credit, availability of head of household filing status, the child and dependent care credit, and tuition tax credits and deductions for...
A New Tax Bracket for Millionaires?
The debate over extending the 20012003 tax cuts beyond 2010 has revolved around two options: extend all provisions for all taxpayers, and the presidents proposal to extend all provisions except those that apply only to high-income taxpayers. A third option has drawn attention: extend the...
The Federal Budget Outlook, Chapter 11
We present new estimates of the budget outlook, based on the latest projections from the Congressional Budget Office and the Medicare and Social Security Trustee reports. The medium-term budget outlook has not changed appreciably since earlier this year. Under reasonable assumptions, the federal...
America's Related Fiscal Problems
In a point-counterpoint with Henry Aaron, senior fellow at the Brookings Institution, Eugene Steuerle discusses five pressing fiscal problems facing America, and suggests tax and budget reform options to address these issues. This discourse includes agreement and disagreement, yet is honestly...
Lowering the Heat Around Raising Retirement Age
In commentary for the San Francisco Chronicle, Gene Steuerle asserts that all of the following myths about Social Security retirement ages are wrong: (1) increasing the retirement age will reduce benefits; (2) increasing the retirement age discriminates against lower-income workers with shorter...
A Value-Added Tax for the United States: Part of the Solution
The U.S. faces a large medium-term federal budget deficit and an unsustainable long-term fiscal gap. Left unattended, these shortfalls will hobble and eventually cripple the economy. The only plausible way to close the gap is through a combination of spending cuts and/or tax increases. This...