Working-age adults with children were more likely than adults without children to face difficulty meeting basic needs in 2022, despite having higher family employment rates. Adults living with children tend to be younger and at an earlier stage of their careers, while also facing child care...

January 10, 2024
Dulce GonzalezElaine MaagMichael Karpman

Although the US tax code does not explicitly reference race or ethnicity, the federal individual income tax can create racial disparities when factors that affect tax liability are associated with race. This paper provides new evidence on racial differences in marriage tax penalties and bonuses...

October 31, 2023
Janet HoltzblattSwati JoshiNora CahillWilliam G. Gale

In 2022, the Internal Revenue Service (IRS) announced the largest inflation adjustment in decades. This brief reviews the history of the Consumer Price Index (CPI) and federal income taxes, including the indexing of the tax code in the early 1980s. It also describes the chained CPI, which is...

February 17, 2023
Robert McClelland

Benefits from the earned income tax credit (EITC) and child tax credit (CTC) play an important role in the financial lives of low- and moderate-income families. Determining how much credit a family qualifies for can be complicated, depending primarily on the number of eligible children, income,...

February 3, 2023
Elaine MaagNikhita AiriLillian Hunter

Both the US and the UK experienced dramatic slowdowns in economic activity in response to the COVID-19 pandemic. Each enacted large-scale responses targeted at workers, and in addition, the US extended direct cash aid broadly through economic impact payments (EIPs) and then to most parents with...

January 31, 2023
Mathieu DespardChristoph GörtzElaine MaagDanny McGowan

Thirty-five states and the District of Columbia passed significant tax cuts in calendar year 2022. However, the design and effect of those tax cuts varied significantly. Using the Tax Policy Center state income tax model, we analyzed three major types of individual income tax cuts—tax rate cuts...

January 19, 2023
Richard C. AuxierDavid Weiner