The earned income tax credit (EITC) and child tax credit (CTC) provide substantial benefits to working families with children. The EITC also provides modest benefits to workers without custodial children, often called “childless workers” for tax purposes. Together, the credits lift almost 9...
The earned income tax credit (EITC) and child tax credit (CTC) provide substantial benefits to working families with children. The EITC also provides modest benefits to workers without custodial children, often called “childless workers” for tax purposes. Together, the credits lift almost 9...
This report analyzes the main provisions of the federal income tax code that provide benefits to families with children, comparing current law with what would be happening had the TCJA not been enacted, and discusses the TCJA’s implications for families of different income levels. On net, almost...
In this brief we consider the largest nonbusiness tax expenditures in the individual income tax. We provide a description of these provisions, estimates of their cost and the distribution of their tax benefits across income groups, and briefly summarize their effects. We consider tax...
The earned income tax credit provides substantial assistance to low- and moderate-income workers. Benefits tilt heavily to families with children. Prompted in part by the success of the credit and in part by shortcomings in the credit, policymakers, advocates, and analysts have offered up reform...
This paper provides estimates of the total cost of and distributional effects of nonbusiness tax expenditures claimed on individual tax returns after enactment of the 2017 Tax Cuts and Jobs Act, taking account of interactions among provisions. Nonbusiness tax expenditures will reduce tax...
The federal earned income tax credit (EITC) is a refundable tax credit that provides substantial cash benefits to low-income working families with children. Working adults without children at home— including noncustodial parents, who are considered “childless” for tax purposes—also face economic...
The Protecting Family and Small Business Tax Cuts Act of 2018 extends major individual income and estate tax provisions from 2017’s Tax Cuts and Jobs Act that are currently scheduled to expire at the end of 2025. The bill would reduce federal revenues by $631 billion within the budget window (...
The Tax Cuts and Jobs Act of 2018 doubled the maximum child tax credit from $1,000 to $2,000. But about 29 million children under age 17 with at least one working parent will miss out on the full increase because their families earn too little in income or owe too little in taxes.
The Tax Cuts and Jobs Act (TCJA) would reduce tax revenue by nearly $1.5 trillion over the 10-year budget window from FY2018 to FY2027. Analysis by the Tax Policy Center shows that the tax cuts would tilt heavily toward the highest fifth of the income distribution, largely the result of cuts to...
Boosting Wages or Helping Children? Understanding How New Earnings and Child Tax Credit Proposals Impact Income Inequality and Vulnerable Children
The earned income tax credit (EITC) and child tax credit (CTC) provide substantial benefits to working families with children. The EITC also provides modest benefits to workers without custodial children, often called “childless workers” for tax purposes. Together, the credits lift almost 9...
Comparing the EITC and Child Tax Credit Proposals
The earned income tax credit (EITC) and child tax credit (CTC) provide substantial benefits to working families with children. The EITC also provides modest benefits to workers without custodial children, often called “childless workers” for tax purposes. Together, the credits lift almost 9...
Shifting Child Tax Benefits in the TCJA Left Most Families About the Same
This report analyzes the main provisions of the federal income tax code that provide benefits to families with children, comparing current law with what would be happening had the TCJA not been enacted, and discusses the TCJA’s implications for families of different income levels. On net, almost...
What are the Largest Nonbusiness Tax Expenditures?
In this brief we consider the largest nonbusiness tax expenditures in the individual income tax. We provide a description of these provisions, estimates of their cost and the distribution of their tax benefits across income groups, and briefly summarize their effects. We consider tax...
Redesigning the EITC: Issues in Design, Eligibility, Delivery, and Administration
The earned income tax credit provides substantial assistance to low- and moderate-income workers. Benefits tilt heavily to families with children. Prompted in part by the success of the credit and in part by shortcomings in the credit, policymakers, advocates, and analysts have offered up reform...
Distributional Effects of Individual Income Tax Expenditures After the 2017 Tax Cuts and Jobs Act
This paper provides estimates of the total cost of and distributional effects of nonbusiness tax expenditures claimed on individual tax returns after enactment of the 2017 Tax Cuts and Jobs Act, taking account of interactions among provisions. Nonbusiness tax expenditures will reduce tax...
Expanding the EITC for Workers without Resident Children
The federal earned income tax credit (EITC) is a refundable tax credit that provides substantial cash benefits to low-income working families with children. Working adults without children at home— including noncustodial parents, who are considered “childless” for tax purposes—also face economic...
Analysis of the Protecting Family and Small Business Tax Cuts Act of 2018
The Protecting Family and Small Business Tax Cuts Act of 2018 extends major individual income and estate tax provisions from 2017’s Tax Cuts and Jobs Act that are currently scheduled to expire at the end of 2025. The bill would reduce federal revenues by $631 billion within the budget window (...
Who Benefits from the Child Tax Credit Now?
The Tax Cuts and Jobs Act of 2018 doubled the maximum child tax credit from $1,000 to $2,000. But about 29 million children under age 17 with at least one working parent will miss out on the full increase because their families earn too little in income or owe too little in taxes.
This...
Impact of the Tax Cuts and Jobs Act on Families with Young Children
The Tax Cuts and Jobs Act (TCJA) would reduce tax revenue by nearly $1.5 trillion over the 10-year budget window from FY2018 to FY2027. Analysis by the Tax Policy Center shows that the tax cuts would tilt heavily toward the highest fifth of the income distribution, largely the result of cuts to...