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 Policy Center has graded the key tax provisions of the pending House stimulus bill (the "American Recovery and Reinvestment Tax Plan of 2009"). Our grades, which rely on the bill's legislative language, focus on how well these measures would boost the economy in the short run....
The Earned Income Tax Credit enjoyed marked success bringing low-income women into the labor force in recent years. At the same time, labor force participation by low-income or less-education men stagnated, and declined among young black men. In response to these labor market conditions, this...
There are two primary tax benefits parents use to offset childcare costs. The Child and Dependent Care Tax Credit (CDCTC) provides a tax credit of up to 35 percent on up to $3,000 of expenses per child ($6,000 total), for a maximum credit of $1,050 per child ($2100 total). Or, employees can...
In 1997 Congress enacted a number of tax benefits directed toward helping middle- and upper-middle income groups meet rising college costs. This shift in goals and strategies raises concerns about the fairness and effectiveness of the evolving federal approach to higher education. This policy...
Two primary wage-support policies help low-income families: the minimum wage and targeted tax credits. Since 1997, when Congress last raised the minimum wage, the real value of the minimum wage has fallen about 20 percent because of inflation, while the earned income tax credit (EITC) and child...
The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) and later the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) decreased marginal tax rates for four person families with earnings at half the median income and twice the median income. Neither piece of legislation changed the...
For nearly a decade, federal higher education subsidies have increasingly been delivered through the tax code rather than through direct spending programs such as grants, loan subsidies, and work study. This paper reviews the results of using new modules in the TRIM and Tax Policy Center...
Child care's costs can be too high for low-income working families. As of 2004, along with a federal credit for child care expenses, 27 states offered tax credits or deductions to offset these expenses. Thirteen states offered a refundable child care creditat least for low-income families;...
Provisions in the federal income tax code that treat married couples as one tax unit and cohabiting couples as two tax units result in both marriage penalties and bonuses. This analysis uses data from the 2002 National Survey of America's Families (NSAF) to show the extent to which low-income,...
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...
Many low- and moderate-income households no doubt were assisted greatly by enhanced federal unemployment insurance benefits that they received earlier this year and would be...
Congress continues to struggle to reach agreement on a new round of economic relief for millions of people suffering from the effects of the coronavirus pandemic.
As a senator, Kamala Harris has proposed broad legislation designed to raise the incomes of low- and middle-income workers via her LIFT the Middle Class Act.
The Health and Economic Recovery Omnibus Emergency Solutions Act , HEROES Act, would substantially increase the earned income tax credit (EITC) for workers without children...
The Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act), passed by the House of Representatives, would temporarily expand the child tax credit (CTC)...
The IRS has done an impressive job delivering over 80 million rebate payments authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. But...
To its credit, the IRS has been quickly distributing the first tranche of rebates authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act...
The federal government’s new coronavirus payments to adults and children will provide much-needed cash to 90 percent of US households. Unfortunately, tens of millions of...
President Trump and some members of Congress are promoting a payroll tax cut to respond to the growing coronavirus outbreak. But if they are looking...
A handful of the remaining Democratic presidential candidates remain committed to increasing the earned income tax credit (EITC), particularly for workers without children at home...
The Tax Cuts and Jobs Act (TCJA) significantly changed how families with children were treated under the individual income tax, but for many - changed...
