This working paper describes the method the Tax Policy Center (TPC) has used to enhance its tax microsimulation model to enable analysis of the distributional effects of tax policies by race and ethnicity. It also presents preliminary results using the enhanced model. Like microsimulation models...
The Urban-Brookings Tax Policy Center (TPC) large-scale microsimulation model produces estimates of how current and proposed tax policies will affect federal revenues and the distribution of tax burdens by income. The model is similar to those used by the Congressional...
NOTE: This is an updated version of the analysis published November 10, 2020.1
The Tax Policy Center (TPC) has analyzed the macroeconomic effects of the tax proposals that President Joe Biden advanced during his 2020 presidential campaign. We find the...
In this paper, we extend the analysis in DeBacker et al. (2021) and consider the sensitivity of the simulation results to the values of important, exogenous parameters. Like any model, the OG...
This paper provides a detailed exposition of the effects of President Biden’s 2020 campaign proposal on the U.S. economy and budget that are summarized in Page et al. (2021). The analysis is done using...
This report describes the Tax Policy Center’s (TPC’s) improved methodology for analyzing the taxation of pass-through income (income generated through business activities that is taxed at the individual level). Under current law, certain types of pass-through income are taxed at different rates...
This chartbook explores the implications of the tax-advantaged treatment of pass-through income enacted as part of the Tax Cuts and Jobs Act of 2017 (TCJA). Section 199A of the TCJA allows a deduction from taxable income of 20 percent of certain pass-through income. We look specifically at the...
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 Policy Center has released an analysis of the macroeconomic effects of the Tax Cuts and Jobs Act as passed by Congress. We find the legislation would boost US gross domestic product (GDP) 0.8 percent in 2018 and would have little effect on GDP in 2027 or 2037. The resulting increase in...
The Tax Policy Center has traditionally measured the macroeconomic effects of tax changes based on historical experience and empirical estimates from the economics literature. But...
Former Vice President Joe Biden’s tax proposals would have only modest effects on the economy, according to a new report by the Tax Policy Center (TPC).
The Coranavirus Aid, Relief, and Economic Security (CARES) Act expansion of Unemployment Insurance (UI) benefits is likely to cost far more than Congress’s original estimate...
Last week the Congressional Budget Office (CBO) released a letter that reviewed how its revenue forecasts have declined over the past two years. While we...
The Tax Cuts and Jobs Act (TCJA) affects the after-tax income of households in two ways: directly through the individual income tax and indirectly through...
In principle, well designed tax cuts can increase US investment and lending by foreigners which can, in turn, increase the aggregate US capital stock and,...
President Trump and his top economic advisers often argue that a major tax reform would permanently boost the nation’s economic growth rate to 3 percent...
A new “dynamic” analysis (one that includes macroeconomic effects) finds that tax cuts consistent with what the Trump Administration outlined in April would reduce federal...
House Republicans are pushing for quick passage of The American Health Care Act (AHCA), which would modify or repeal many aspects of the Affordable Care...
Incorporating the macroeconomic effects of the tax plans of Hillary Clinton and Donald Trump has little effect on their revenue implications, according to updated analyses...
