Tax law changes since 2017 have largely reduced the uptake of the itemized deduction for medical expenses. In 2020, 2.4% of total tax returns claimed the deduction compared to 6.7% in 2017.
May 22, 2023
May 22, 2023
Federal individual income tax liability as a share of adjusted gross income (AGI) increases as income rises. In tax year 2020, income tax liability was 13.6% of AGI for all tax filers, compared with 26% for tax filers in the top 1% of the income distribution.
May 15, 2023
May 15, 2023
The tax code subsidizes health care consumption through credits, deductions, and exemptions, such as the exclusion for employer contributions to insurance plans. In fiscal year 2023, Treasury estimated these provisions to total $276 billion.
May 8, 2023
May 8, 2023
Consumption tax revenue (federal, state, and local levels) was 17% of total tax revenues for the US in 2020, compared to 27% for all other OECD countries combined. This is in part because the US does not have a broad-based national sales tax, or a VAT.
May 1, 2023
May 1, 2023
In 2020, 9.4 million income tax returns (or 6% of total) claimed the Retirement Savings Contributions Credit (or Saver's Credit). This nonrefundable tax credit, enacted in 2001, matches a portion of voluntary contributions to 401(k)s, IRAs, and similar retirement plans.
April 24, 2023
April 24, 2023
The federal government spent $752 billion on national defense, or about 12% of total federal expenditures in FY 2022, compared to over 40% in the 1960s. Over time, more spending has been towards Social Security, Medicare, and Medicaid.
April 17, 2023
April 17, 2023
In tax year 2020, 9% of all individual income tax returns claimed the itemized deduction for charitable contributions. By state, the shares ranged from 3% in West Virginia to 21% in Maryland.
April 10, 2023
April 10, 2023
Per Treasury, the five largest federal tax expenditures in fiscal year 2023 will each cost over $100 billion in forgone tax revenue. These are broadly for health care benefits, housing, capital gains, retirement, and families with children.
April 3, 2023
April 3, 2023
According to the Federal Reserve, 77% of US families held debt in 2019, but their sources of debt varied. 52% held debt from installment loans, 45% from credit card balances, 42% from their primary residence.
March 27, 2023
March 27, 2023
The composition of receipts has not changed substantially over the last 40 years. In FY 2022, 54% came from individual income taxes (the highest ever recorded), 9% from corporate income taxes, 30% from payroll taxes, 2% from excise taxes, and 6% from other sources.
March 20, 2023
March 20, 2023
15.4 million tax returns claimed the itemized deduction for state and local taxes paid in 2020. Among those with incomes over $1 million, 72% claimed the SALT deduction, compared with 2% of those with incomes below $50,000.
March 13, 2023
March 13, 2023
In 2023, state gas tax rates averaged 30 cents per gallon. Rates were lowest in Alaska (9 cents) and Hawaii (16 cents), and highest in Pennsylvania (58 cents) and California (63 cents).
March 6, 2023
March 6, 2023
In 2019, 77% of White families had unrealized capital gains, compared with 47% of Black families, 49% of Hispanic or Latino families, and 62% of all other families. Amounts also varied significantly within each group.
February 27, 2023
February 27, 2023
After-tax incomes are less unequally distributed than before-tax incomes. In 2019, the top 1% of households had 15.9% of before-tax and 13% of after-tax income, while the lowest quintile had 5.2% of before-tax and 7.7% of after tax-income.
February 20, 2023
February 20, 2023
As of January 2023, state excise taxes on beer ranged from 2 cents per gallon in WY to $1.29 per gallon in TN. Purchasing a six-pack of beer costs about 71 cents more in excise taxes in TN compared with WY.
