Research report

The earned income tax credit (EITC) and child tax credit (CTC) provide substantial benefits to working families with children. The EITC also provides modest benefits to workers without custodial children, often called “childless workers” for tax purposes. Together, the credits lift almost 9...

July 23, 2020
Elaine MaagRobert McClellandC. Eugene Steuerle
Research report

This report describes the Tax Policy Center (TPC) Microsimulation Model’s revamped home mortgage interest deduction (MID) module. The TPC tax model uses the module for simulating proposals that reform the MID. The new MID module improves upon the prior one in accounting for potential changes in...

July 17, 2020
Surachai KhitatrakunEric ToderRobert McClellandChenxi Lu
Research report

The Statistics of Income division of the Internal Revenue Service releases an annual public-use file of individual income tax returns that is invaluable to tax analysts in government agencies, nonprofit research organizations, and the private sector. However, the Statistics of Income division...

July 9, 2020
Claire BowenVictoria L. BryantLeonard E. BurmanSurachai KhitatrakunGraham MacDonaldRobert McClellandPhilip StallworthKyle UeyamaAaron R. WilliamsNoah Zwiefel
Research report

This report describes the Tax Policy Center (TPC) Microsimulation Model’s revamped health module.  The TPC tax model uses the health module for simulating tax expenditures for health care, analyzing changes in the tax treatment of employer-provided health benefits, and evaluating health-related...

July 1, 2020
Gordon B. MerminMatthew Buettgens
Research report

From 2010 through 2019, funding for the Internal Revenue Service (IRS) dropped by 24 percent, after adjustment for inflation. As a consequence, the percentage of taxpayers who were audited fell by nearly half. In this paper, we use confidential IRS data to compare the returns on investments (ROI...

June 26, 2020
Janet HoltzblattJamie McGuire
Research report

State tax revenues showed continued growth in the first half of fiscal year 2020. State government tax revenues from major sources showed solid year-over-year growth at 6.6 percent in the fourth quarter of 2019. Preliminary data show strong growth in January and February before declines in March...

May 26, 2020
Lucy Dadayan
Research report

In this report, we compare revenue equivalent alternatives to the $10,000 annual limit on the state and local tax (SALT) deduction enacted in the 2017 Tax Cuts and Jobs Act (TCJA). We consider options that would limit all itemized deductions, not just the SALT deduction, and an additional option...

May 7, 2020
Frank SammartinoGordon B. MerminNoah Zwiefel
Research report

State and local government tax revenues showed normal growth in the third quarter of 2019 after declines in the fourth quarter of 2018, much weaker growth in the first quarter of 2019, and robust growth in the second quarter of 2019. Most of the volatility in the prior quarters...

February 24, 2020
Lucy Dadayan
Research report

In this report, we evaluate major federal tax expenditures. We distinguish between tax expenditures that are effectively spending programs and those that are departures from a comprehensive income tax but are not essentially spending substitutes. Most major tax expenditures have some policy...

January 22, 2020
Frank SammartinoEric Toder
Research report

The rise of the gig economy has increased interest in the self-employment sector and highlighted the benefits and costs of these types of jobs. One understudied issue is that self-employment (which overlaps substantially with the gig economy) concerns a part of the tax code that is difficult for...

December 9, 2019
H. Elizabeth PetersElaine Maag