Effective marginal tax rates measure how a household’s material resources change as its earned income rises. For example, when a household’s earnings from work rise by $100, its net resources may rise by less than $100 as those earnings may be subject to payroll and federal, state, and local...
The Tax Cuts and Jobs Act was passed into law on a dramatically accelerated schedule. That speed and the enormous scope of the TJCA and its individual elements suggests that alternatives may have been overlooked. The consequences of a proposed change in tax law are usually estimated with a...
On March 12, 2019, Mark Mazur testified in front of the 116th United States House of Representatives Committee on Ways and Means, Subcommittee on Select Revenue Measures for a hearing entitled, "Temporary Policy in the Internal Revenue Code."
State government tax revenues have fluctuated wildly over the past year largely because of the Tax Cuts and Jobs Act passed in late December 2017. Overall, year-over-year growth in state tax revenues was strong in the third quarter of 2018 but weaker than the growth observed in the final quarter...
On February 27, 2019 William G. Gale testified in front of the 116th U.S. House of Representatives Committee on the Budget for a hearing entitled, "2017 Tax Law: Impact on the Budget and American Families."
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...
Estimating Marginal Tax Rates Using a Microsimulation Model
Effective marginal tax rates measure how a household’s material resources change as its earned income rises. For example, when a household’s earnings from work rise by $100, its net resources may rise by less than $100 as those earnings may be subject to payroll and federal, state, and local...
The TCJA: What Might Have Been
The Tax Cuts and Jobs Act was passed into law on a dramatically accelerated schedule. That speed and the enormous scope of the TJCA and its individual elements suggests that alternatives may have been overlooked. The consequences of a proposed change in tax law are usually estimated with a...
Temporary Tax Policy in the United States
On March 12, 2019, Mark Mazur testified in front of the 116th United States House of Representatives Committee on Ways and Means, Subcommittee on Select Revenue Measures for a hearing entitled, "Temporary Policy in the Internal Revenue Code."
State Tax and Economic Review, 2018 Quarter 3
State government tax revenues have fluctuated wildly over the past year largely because of the Tax Cuts and Jobs Act passed in late December 2017. Overall, year-over-year growth in state tax revenues was strong in the third quarter of 2018 but weaker than the growth observed in the final quarter...
The 2017 Tax Law: Impact on the Budget and American Families
On February 27, 2019 William G. Gale testified in front of the 116th U.S. House of Representatives Committee on the Budget for a hearing entitled, "2017 Tax Law: Impact on the Budget and American Families."
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...