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.
The Tax Cuts and Jobs Act (TCJA) missed an opportunity to help low-income childless workers, very low-income families with children, and families with young children – all groups where investments could be particularly productive. The child tax credit (CTC) and earned income tax credit (EITC)...
When a recession hits, the federal government usually responds with tax cuts and additional financial assistance, because automatic policies built into the law often prove inadequate and elected officials need and want to respond to the crisis. This brief compares the distributional and stimulus...
Children under age 6 experience the highest rates of poverty of any age group and are particularly vulnerable to poverty’s lasting effects. The child tax credit (CTC) provides a $2,000 per child credit for children under age 17 (along with a credit of up to $500 per dependent 17 and older). But...
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...
Distributional analyses play a prominent role in policy discussions. Both tax and transfer policy have important distributional consequences, but traditionally they have been examined separately. This report describes a new methodology for integrated distributional analysis that imports results...
Families with young children tend to have lower incomes than other families. The current child tax credit provides substantial benefits to families with children, but the maximum benefit of $1,000 is the same for all children under 17, regardless of age. We analyze a proposal that would provide...
Income volatility may complicate tax filing and predicting eligibility for critical tax benefits, such as the earned income tax credit. Half of all working-age adults¬—and 64 percent of low-income, working-age adults—have household income that for at least one month of the year will spike above...
Statement of Elaine Maag, Senior Research Associate at the Urban-Brookings Tax Policy Center, before the Democratic Women’s Working Group on May 24th, 2017.
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...
