This exercise is a structured analysis to understand the implications that repealing tax expenditures would have for the overall federal tax system. The baseline tax law for the calculations in this exercise is the law in effect before enactment of the Tax Cuts and Jobs Act (essentially the Tax...
The Tax Cuts and Jobs Act of 2018 doubled the maximum child tax credit from $1,000 to $2,000. But about 29 million children under age 17 with at least one working parent will miss out on the full increase because their families earn too little in income or owe too little in taxes.
Unemployment insurance (UI) helps workers to smooth their consumption after employment loss, but also diminishes their incentive to quickly find new jobs. While both of these considerations have been extensively studied, little or no attention has been paid to possible implications of UI for...
Unemployment insurance (UI) helps workers smooth their consumption after employment loss, but may also diminish their incentive to quickly find new jobs, thereby lengthening spells of unemployment and raising the aggregate unemployment rate. Less appreciated is the effect that UI has on...
The Tax Cuts and Jobs Act of 2017 allows owners of certain pass-through businesses (such as sole proprietorships, partnerships, and S corporations) to take a new deduction. However, the structure of the deduction is complicated because its generosity depends on many factors, such as the nature...
Taxes defined Congress’s agenda for much of 2017, culminating in passage of the Tax Cuts and Jobs Act (TCJA) in late December. Because of that new federal law, taxes will dominate many state legislative sessions in 2018. The TCJA changed many federal tax provisions, and how states choose to...
Widespread and profound public misinformation about government presents a serious challenge for democratic accountability. This paper demonstrates that two of the most common examples of public misperception may be systematically overestimated; public misperceptions of government spending are in...
Conventional wisdom holds that U.S. productivity growth, the weakest it has been in more than a quarter-century, is the reason for today’s subpar GDP growth and low wages. But is the conventional wisdom correct? Rudolph G. Penner comments in this article which was originally published by ...
The Tax Cuts and Jobs Act (TCJA), under the conference agreement, would reduce taxes on average for all income groups. However, not all taxpayers would benefit to the same degree, and some would pay higher taxes. Even taxpayers with the same income could pay different amounts of tax depending...
The Tax Policy Center has released an analysis of the macroeconomic effects of the Tax Cuts and Jobs Act as passed by Congress. We find the legislation would boost US gross domestic product (GDP) 0.8 percent in 2018 and would have little effect on GDP in 2027 or 2037. The resulting increase in...
The Tax Reform Tradeoff: Eliminating Tax Expenditures, Reducing Rates Final Report
This exercise is a structured analysis to understand the implications that repealing tax expenditures would have for the overall federal tax system. The baseline tax law for the calculations in this exercise is the law in effect before enactment of the Tax Cuts and Jobs Act (essentially the Tax...
Who Benefits from the Child Tax Credit Now?
The Tax Cuts and Jobs Act of 2018 doubled the maximum child tax credit from $1,000 to $2,000. But about 29 million children under age 17 with at least one working parent will miss out on the full increase because their families earn too little in income or owe too little in taxes.
This...
Unemployment Insurance and Worker Mobility
Unemployment insurance (UI) helps workers to smooth their consumption after employment loss, but also diminishes their incentive to quickly find new jobs. While both of these considerations have been extensively studied, little or no attention has been paid to possible implications of UI for...
Policy Brief: Unemployment Insurance and Worker Mobility
Unemployment insurance (UI) helps workers smooth their consumption after employment loss, but may also diminish their incentive to quickly find new jobs, thereby lengthening spells of unemployment and raising the aggregate unemployment rate. Less appreciated is the effect that UI has on...
Navigating the New Pass-Through Provisions: A Technical Explanation
The Tax Cuts and Jobs Act of 2017 allows owners of certain pass-through businesses (such as sole proprietorships, partnerships, and S corporations) to take a new deduction. However, the structure of the deduction is complicated because its generosity depends on many factors, such as the nature...
The Tax Debate Moves to the States: The Tax Cuts and Jobs Act Creates Many Questions for States That Link to Federal Income Tax Rules
Taxes defined Congress’s agenda for much of 2017, culminating in passage of the Tax Cuts and Jobs Act (TCJA) in late December. Because of that new federal law, taxes will dominate many state legislative sessions in 2018. The TCJA changed many federal tax provisions, and how states choose to...
Public Ignorance or Elitist Jargon?: Reconsidering Americans’ Overestimates of Government Waste and Foreign Aid
Widespread and profound public misinformation about government presents a serious challenge for democratic accountability. This paper demonstrates that two of the most common examples of public misperception may be systematically overestimated; public misperceptions of government spending are in...
Does the Conventional Wisdom About Productivity Need to be Reconsidered?
Conventional wisdom holds that U.S. productivity growth, the weakest it has been in more than a quarter-century, is the reason for today’s subpar GDP growth and low wages. But is the conventional wisdom correct? Rudolph G. Penner comments in this article which was originally published by ...
Updated Effects of the Tax Cuts and Jobs Act on Representative Families
The Tax Cuts and Jobs Act (TCJA), under the conference agreement, would reduce taxes on average for all income groups. However, not all taxpayers would benefit to the same degree, and some would pay higher taxes. Even taxpayers with the same income could pay different amounts of tax depending...
Macroeconomic Analysis of the Tax Cuts And Jobs Act
The Tax Policy Center has released an analysis of the macroeconomic effects of the Tax Cuts and Jobs Act as passed by Congress. We find the legislation would boost US gross domestic product (GDP) 0.8 percent in 2018 and would have little effect on GDP in 2027 or 2037. The resulting increase in...