Research report

The dependent exemption reduces taxable income by a fixed amount ($3,650 in 2010) for each qualifying child in the family. Benefits depend on a family's marginal tax rate. Low-income families receive a tax reduction of up to $365 per exemption compared to high income families that receive a tax...

December 30, 2010
Elaine Maag
Research report

The Wyden-Gregg tax reform proposal would represent a broad reform of the federal income tax system. This paper examines the plan's impact on individuals' effective marginal tax rates (EMTR), the incremental amount of tax owed on an additional dollar of income. We examine the impact on the EMTR...

July 14, 2010
Katherine LimJeffrey Rohaly
Research report

The Bipartisan Tax Fairness and Simplification Act of 2010 ("Wyden-Gregg," introduced as S. 3018) is a broad reform of the federal income tax system. Some provisions would also expand the Social Security payroll tax base. This paper presents the Tax Policy Center's estimates of the revenue and...

May 24, 2010
James R. NunnsJeffrey Rohaly
Research report

The value of the tax preference for pensions depends on the marginal tax schedule and on the tax treatment of income from assets held outside a pension account. We find that changes in U.S. tax law, especially the reduction in tax rates on capital gains and dividends, but also the decline in...

May 19, 2010
Gary T. BurtlessEric Toder
Research report

To encourage better retirement saving, President Obama recently proposed policies that would require firms without retirement savings plans to automatically enroll their workers in IRAs. In addition, the president proposed an expansion of the Saver's Credit to be fully refundable and available...

August 31, 2009
Benjamin H. HarrisRachel M. Johnson
Research report

The House leadership has proposed to finance health care reform with a surtax on adjusted gross income (AGI) of high-income individuals, while the president's budget would increase the two top marginal tax rates on taxable income. Income taxed at statutory marginal rates is 58 percent of AGI for...

August 25, 2009
Jacob GoldinEric Toder
Research report

The largest tax preferences for housing, health care, and retirement saving reduce federal revenues by about 3 percent of GDP. They raise after-tax income proportionally more for higher income groups than lower income groups, but raise income proportionately less for those at the very top. The...

July 21, 2009
Benjamin H. HarrisKatherine LimEric Toder
Research report

The financial crisis has provoked calls for a fundamental reform of the nation's retirement saving structure. This article argues that rather than dismantle the existing system, policymakers should build on existing reforms and expand the automatic 401(k) to help eligible workers save more and...

June 11, 2009
Benjamin H. HarrisLina Walker
Research report

Most advanced countries exempt returns to retirement saving from income tax, but private saving rates are falling and many people are saving too little for retirement. There is a trade-off between the goals of promoting wide participation in retirement saving plans and allowing more choice to...

April 2, 2009
Eric Toder
Research report

Eugene Steuerle suggests one ripe area for expanded reporting involving capital gains, particularly from mutual funds and brokerage houses. The IRS could match net gains from information reports with what taxpayers report on their returns, taxpayers would not be faced with multiple choices, they...

August 8, 2005
C. Eugene Steuerle