The federal income tax system provides substantial benefits to families with children. In 2013, the Tax Policy Center estimates that five major child-related tax benefits the earned income tax credit (EITC), the child tax credit, the child and dependent care tax credit, the dependent exemption,...

January 27, 2014
Elaine Maag

State governments often use their tax system to partner with the private sector on economic development initiatives. A key part of their economic development strategy, states use tax incentives as one tool of economic development to compete with other states and globally for investment, jobs,...

February 28, 2016
Norton Francis

Cuts in top state income taxes are intended to raise economic growth, but could instead force punishing spending cuts, as revenues fall and states confront borrowing constraints. Previous work shows no clear impact of state taxes on growth. In new research, we build on a widely cited study that...

September 11, 2015
William G. Gale, Aaron Krupkin, Kim S. Rueben

Opposition to the ACA’s “Cadillac” tax is growing. This excise tax applies to employer health benefits exceeding a threshold. There has been broader support over time for a cap on the tax exclusion of employer contributions to health insurance, including from many who now want to repeal the...

October 22, 2015
Linda J. Blumberg, John Holahan, Gordon B. Mermin

The inventory, or stock in trade, of a business is eligible for a special "enhanced" charitable contribution deduction under the federal income tax. The many requirements to claim an enhanced deduction present unique challenges for the Internal Revenue Service (IRS). This issue brief highlights...

January 6, 2013
Roger Colinvaux

In budget policy, myths are progress's number one enemy. One silly fiction now making the rounds is that
we don't know how to judge the relative value of different types of health care, so we can't control health care
costs-at least not for now. Like many myths, this one contains an...

July 7, 2008
C. Eugene Steuerle

In principle, a well-timed and carefully designed economic stimulus package can help avert or minimize a recession. In practice, timing a fiscal stimulus is nearly impossible since forecasters usually "predict" economic turning points only long after they have occurred. Len Burman and Jeff...

January 16, 2008
Leonard E. Burman, Jeffrey Rohaly

This fact sheet examines the effects of the American Taxpayer Relief Act of 2012 (ATRA) on charitable giving. The major individual income tax provisions are estimated to increase giving by $3.3 billion or 1.5 percent, relative to 2012 law, mainly because of the increase in the top marginal tax...

January 10, 2013
Joseph Rosenberg, C. Eugene Steuerle, Katherine Toran

If we're going to have a club whose members pay fairly low individual tax rates, we need to determine who deserves membership on the basis of principles. Few argue that letting hedge fund managers and private equity partners in the club furthers either progressivity or efficiency principles. The...

October 15, 2007
C. Eugene Steuerle