I believe that we can work toward providing a strong safety net for all people—and that the tax system will always be an important part of that effort.
In recognition of the important work family caregivers do, the Economic Security Project (ESP) has proposed that they be eligible for the cost-of-living refund, an expansion of the earned income tax credit (EITC). Among other changes to the EITC, the cost-of-living refund would extend benefits...
The rise of the gig economy has increased interest in the self-employment sector and highlighted the benefits and costs of these types of jobs. One understudied issue is that self-employment (which overlaps substantially with the gig economy) concerns a part of the tax code that is difficult for...
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...
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...
The cost-of-living refund (CLR), a proposal from the Economic Security Project, would revise the current earned income tax credit (EITC) by increasing benefits for many people, expanding eligibility for the credit, and paying the credit in advance via monthly payments. The proposal would provide...
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...
Effective marginal tax rates measure how a household’s material resources change as its earned income rises. For example, when a household’s earnings from work rise by $100, its net resources may rise by less than $100 as those earnings may be subject to payroll and federal, state, and local...
A robust carbon tax would generate considerable revenue. Some carbon tax advocates have suggested returning those revenues to Americans through direct payments, often called carbon dividends. We examine how to design these dividends considering two, sometimes conflicting, principles. Carbon...
The Tax Cuts and Jobs Act modestly decreased federal individual income taxes for most low- and middle-income families. However, the federal tax changes interacted with state laws in ways that meant some of these same families could see state tax increases. This brief discusses how implementing...
In 2021, Congress enacted sweeping legislation that temporarily cut child poverty nearly in half . A key feature was the expanded child tax credit (CTC),...
Even though jobs are plentiful and wages are up, many families still face a shaky economic outlook. Higher than average inflation, which tends to hit...
As President Biden and congressional Democrats make another push to reach a compromise on a social spending, climate change, and tax bill, a key issue...
As Congress struggles to develop a scaled back version of President Biden’s Build Back Better (BBB) plan, some observers (including my TPC colleague Howard Gleckman...
In 2021, the Child Tax Credit (CTC), helped nearly all families with children . But this year, because American Rescue Plan (ARP) expansions have lapsed,...
Starting in July, many parents began receiving monthly payments of the Child Tax Credit (CTC). A new IPSOS survey as well as Urban Institute interviews...
As Congress debates whether to extend the major, but temporary, changes to the Child Tax Credit (CTC) it adopted earlier this year, a crucial question...
Families began receiving monthly Child Tax Credit (CTC) payments on July 15. For many, those regular payments—currently permitted through the end of the year—will combat...
IRS Commissioner Charles Rettig told the Senate Finance Committee on April 13 that the agency could begin delivering monthly 2021 Child Tax Credit (CTC) payments...
By approving a third round of economic impact payments (EIPs) and expanding refundability of the Child Tax Credit, Congress has made refundable tax credits a...
President Biden, the House Ways & Means Committee, and Senator Mitt Romney (R-UT) agree: They want to increase child benefits to parents who work and...
President Biden and House Way & Means Committee Democrats have proposed increasing the earned income tax credit (EITC) for workers without children at home –...
The plan to expand the Child Tax Credit (CTC) proposed yesterday by House Ways & Means Committee Democrats included an important new feature—the IRS would...
