Total state tax revenue collections increased 7.2 percent in nominal terms and 0.1 percent in real terms in the third quarter of 2022 relative to a year earlier. This is much weaker than the strong revenue growth observed in the first half of 2022. Both corporate income and general sales tax...
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...
Lifetime Social Security and Medicare taxes are scheduled to be significantly lower than lifetime Social Security and Medicare benefits for most workers in future decades, based on the latest data. This report compares the benefits and taxes paid by beneficiaries at the age of 65 from 1960 to...
Although it is generally blind with respect to race, the tax code can create racial disparities when factors that affect tax liability are correlated with race. In this working paper, we provide new evidence on racial differences in marriage penalties and bonuses in the income tax, using data...
This working paper describes the method the Tax Policy Center (TPC) has used to enhance its tax microsimulation model to enable analysis of the distributional effects of tax policies by race and ethnicity. It also presents preliminary results using the enhanced model. Like microsimulation models...
States and local governments in the US have started implementing cryptocurrency and blockchain technology initiatives and policies. Supporters of these technologies highlight the transformative potential for improving local governance, but many remain skeptical about their long-term effects on...
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,...
Medicare faces serious short-term and long-term financial pressures. This report examines the revenue and distributional effects of options to increase revenues for Medicare and discusses their relative pros and cons. We use the Tax Policy Center microsimulation model to estimate the effect of...
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How Fines and Fees Impact Families: Can Policies Like the Child Tax Credit Help?
State Tax and Economic Review, 2022 Quarter 3
Total state tax revenue collections increased 7.2 percent in nominal terms and 0.1 percent in real terms in the third quarter of 2022 relative to a year earlier. This is much weaker than the strong revenue growth observed in the first half of 2022. Both corporate income and general sales tax...
Adjusting the Individual Income Tax for Inflation
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...
Social Security & Medicare Lifetime Benefits and Taxes: 2022
Lifetime Social Security and Medicare taxes are scheduled to be significantly lower than lifetime Social Security and Medicare benefits for most workers in future decades, based on the latest data. This report compares the benefits and taxes paid by beneficiaries at the age of 65 from 1960 to...
Racial Disparities in the Income Tax Treatment of Marriage
Although it is generally blind with respect to race, the tax code can create racial disparities when factors that affect tax liability are correlated with race. In this working paper, we provide new evidence on racial differences in marriage penalties and bonuses in the income tax, using data...
A New Approach for Estimating the Impact of Tax Policies by Race and Ethnicity
This working paper describes the method the Tax Policy Center (TPC) has used to enhance its tax microsimulation model to enable analysis of the distributional effects of tax policies by race and ethnicity. It also presents preliminary results using the enhanced model. Like microsimulation models...
Around the Block
States and local governments in the US have started implementing cryptocurrency and blockchain technology initiatives and policies. Supporters of these technologies highlight the transformative potential for improving local governance, but many remain skeptical about their long-term effects on...
Understanding Yearly Changes in Family Structure and Income and Their Impact on Tax Credits
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,...
Options for Increasing Medicare Revenues
Medicare faces serious short-term and long-term financial pressures. This report examines the revenue and distributional effects of options to increase revenues for Medicare and discusses their relative pros and cons. We use the Tax Policy Center microsimulation model to estimate the effect of...