In this report, we use a panel of anonymized data derived from income tax returns filed between 1999 and 2010 and Social Security benefits data to study how the labor force participation of retirement-age couples responds to taxation. We examine the responses of primary and secondary earners of...
Federal tax and spending policies are worsening the problem of economic inequality. But the tax breaks that overwhelmingly benefit the wealthy are only part of the challenge. The increasing diversion of government spending toward income supports and away from opportunity-building programs also...
Recent tax credit proposals to help low- and middle-income families, such as Senator Kamala Harris’ LIFT the Middle Class Act, are being hotly debated. We examine the ability of these proposals, the current earned income tax credit (EITC), and the child tax credit (CTC) to achieve three goals:...
We provide estimates of the federal budget outlook based on new Congressional Budget Office (CBO) analysis. CBO projects a debt-to-GDP ratio of 93 percent by fiscal year 2029 under current law, up from 78 percent today. Under a “current policy” scenario similar to CBO’s alternative fiscal...
Steven M. Rosenthal, Senior Fellow at the Urban-Brookings Tax Policy Center, testified before the House Ways and Means Subcommittee on Oversight during a hearing entitled “Legislative Proposals and Tax Law Related to Presidential and Vice-Presidential Tax Returns.” In his testimony, Rosenthal...
In this report, we explore how and why local governments have turned to cooperation to boost economic development. We synthesize highlights from the literature, explore program features from two regional case studies, and share findings from interviews with local practitioners. Although research...
Total state tax revenue from all sources showed strong growth in the last three quarters of 2018. States collected slightly over $1 trillion in tax revenues in fiscal year 2018, a gain of 7.8 percent over 2017. But the revenue growth was uneven among the states and across revenue sources. Much...
A robust carbon tax would generate considerable revenue. Some carbon tax advocates have suggested returning those revenues to Americans through direct payments, often called carbon dividends. We examine how to design these dividends considering two, sometimes conflicting, principles. Carbon...
The Tax Cuts and Jobs Act modestly decreased federal individual income taxes for most low- and middle-income families. However, the federal tax changes interacted with state laws in ways that meant some of these same families could see state tax increases. This brief discusses how implementing...
The federal tax treatment of charitable giving and the nonprofit sector is at an inflection point. Following enactment of the Tax Cuts and Jobs Act in 2017, the number of taxpayers who will claim a charitable deduction will decline substantially. What does that mean for charitable giving and the...
Taxes and Retirement Decisions Among Women and Secondary Earners
In this report, we use a panel of anonymized data derived from income tax returns filed between 1999 and 2010 and Social Security benefits data to study how the labor force participation of retirement-age couples responds to taxation. We examine the responses of primary and secondary earners of...
Taxes, Government Transfers and Wealth Inequality
Federal tax and spending policies are worsening the problem of economic inequality. But the tax breaks that overwhelmingly benefit the wealthy are only part of the challenge. The increasing diversion of government spending toward income supports and away from opportunity-building programs also...
Lots of Plans to Boost Tax Credits: Which is Best?
Recent tax credit proposals to help low- and middle-income families, such as Senator Kamala Harris’ LIFT the Middle Class Act, are being hotly debated. We examine the ability of these proposals, the current earned income tax credit (EITC), and the child tax credit (CTC) to achieve three goals:...
If Not Now, When? New Estimates of the Federal Budget Outlook
We provide estimates of the federal budget outlook based on new Congressional Budget Office (CBO) analysis. CBO projects a debt-to-GDP ratio of 93 percent by fiscal year 2029 under current law, up from 78 percent today. Under a “current policy” scenario similar to CBO’s alternative fiscal...
The Value of Presidential and Vice-Presidential Tax Returns to the Public and Congress
Steven M. Rosenthal, Senior Fellow at the Urban-Brookings Tax Policy Center, testified before the House Ways and Means Subcommittee on Oversight during a hearing entitled “Legislative Proposals and Tax Law Related to Presidential and Vice-Presidential Tax Returns.” In his testimony, Rosenthal...
Partners or Pirates? Collaboration and Competition in Local Economic Development
In this report, we explore how and why local governments have turned to cooperation to boost economic development. We synthesize highlights from the literature, explore program features from two regional case studies, and share findings from interviews with local practitioners. Although research...
Another Stellar Quarter of State Revenue Growth, But the Pace Is Slowing Down
Total state tax revenue from all sources showed strong growth in the last three quarters of 2018. States collected slightly over $1 trillion in tax revenues in fiscal year 2018, a gain of 7.8 percent over 2017. But the revenue growth was uneven among the states and across revenue sources. Much...
How to Design Carbon Dividends
A robust carbon tax would generate considerable revenue. Some carbon tax advocates have suggested returning those revenues to Americans through direct payments, often called carbon dividends. We examine how to design these dividends considering two, sometimes conflicting, principles. Carbon...
Addressing the Family-Sized Hole Federal Tax Reform Left for States
The Tax Cuts and Jobs Act modestly decreased federal individual income taxes for most low- and middle-income families. However, the federal tax changes interacted with state laws in ways that meant some of these same families could see state tax increases. This brief discusses how implementing...
Reforming Charitable Tax Incentives: Assessing Evidence and Policy Options
The federal tax treatment of charitable giving and the nonprofit sector is at an inflection point. Following enactment of the Tax Cuts and Jobs Act in 2017, the number of taxpayers who will claim a charitable deduction will decline substantially. What does that mean for charitable giving and the...