: TaxVox

"The Long and Winding Road... Will Never Disappear..."

The Senate’s six-year highway bill inches forward, after dropping a Social Security provision. Majority Leader Mitch McConnell won 14 Democrats’ votes for the bill after he agreed to drop a $2.3 billion offset. The money would have come from barring people with felony warrants from getting Social
July 24, 2015Renu Zaretsky
Federal Budget and Economy: TaxVox

Who Benefits Most From Repealing the ACA Cadillac Tax?

Republicans and some Democrats in Congress are pressing to repeal the Affordable Care Act’s Cadillac tax—a 40 percent excise tax on high-cost employer-sponsored health insurance plans. Backers of repeal argue that curbs on these generous plans would disproportionately hurt low- and middle-income
July 23, 2015Howard Gleckman
: TaxVox

Big Talk, Growing Opposition

Can the Senate pass a highway bill? Last night, the Senate finally voted to begin debate on its version of a transportation bill. But it is in for a tough slog thanks in part to two GOP presidential hopefuls. Ted Cruz has threatened to tie the Iran deal to the measure. The Texan wants an amendment
July 23, 2015Renu Zaretsky
State and Local Issues: Research report

Federal and State Income Taxes and Their Role in the Social Safety Net

Federal and state income taxes play an important role in providing income support for low-income households by administering refundable tax credits, such as the earned income tax credit (EITC). Using the Urban Institute’s Net Income Change Calculator (NICC), which provides state- and federal-level
July 23, 2015Elaine Maag
Federal Budget and Economy: Brief

Distributional Impact of Repealing the Excise Tax on High Cost Health Plans

TPC has estimated the distributional impact of repealing the Affordable Care Act’s “Cadillac tax” in 2018 and 2025. While the average tax cut increases with income throughout the distribution, the middle and fourth income quintiles receive the largest share of the tax benefit compared with their
July 22, 2015Gordon B. MerminEric Toder
Individual Taxes

T15-0096 - Repeal Cadillac Tax, Premiums at Post-Cadillac Tax Levels, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2018

July 22, 2015
Individual Taxes

T15-0097 - Repeal Cadillac Tax, Premiums at Post-Cadillac Tax Levels, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Level, 2018

July 22, 2015
Individual Taxes

T15-0099 - Repeal Cadillac Tax, Premiums Revert to Pre-Cadillac Tax Levels, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Level, 2018

July 22, 2015
Individual Taxes

T15-0098 - Repeal Cadillac Tax, Premiums Revert to Pre-Cadillac Tax Levels, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2018

July 22, 2015
Individual Taxes

T15-0100 - Repeal Cadillac Tax, Premiums at Post-Cadillac Tax Levels, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2025

July 22, 2015
Individual Taxes

T15-0101 - Repeal Cadillac Tax, Premiums at Post-Cadillac Tax Levels, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Level, 2025

July 22, 2015
Individual Taxes

T15-0102 - Repeal Cadillac Tax, Premiums Revert to Pre-Cadillac Tax Levels, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2025

July 22, 2015
Individual Taxes

T15-0103 - Repeal Cadillac Tax, Premiums Revert to Pre-Cadillac Tax Levels, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Level, 2025

July 22, 2015
: Daily Deduction

Reruns, R-Rated Reform, and Gimmickry

Everything old is new again. It took the Senate Finance Committee about 90 minutes to move a bill to renew a slew of expired tax breaks for two years. The cost: $97 billion. Bloomberg notes that beneficiaries include Broadway producers, big banks, and wind-energy companies. Finance Chair Orrin
July 22, 2015Renu Zaretsky
Campaigns, Proposals, and Reforms: TaxVox

Hillary Clinton’s Complex, Gimmicky Profit-Sharing Plan

Democratic presidential frontrunner Hillary Clinton has offered a new tax subsidy to encourage firms to share profits with their employees. The idea of profit sharing is worth debating, but Clinton’s specific proposal is enormously complicated and depends on budget gimmicks to add up. Her basic
July 21, 2015Howard Gleckman
: TaxVox

Highway Drama Drives Contingency Planning

Still on the Hill: Extenders and highway funding drama. Today, the Senate Finance Committee is expected to mark-up its proposed restoration of expired tax breaks , and the full Senate plans to hold a procedural vote on highway funding legislation. Congress faces increasing pressure to move quickly
July 21, 2015Renu Zaretsky
: TaxVox

ACA Effects and Estimates

Treasury shares tax filing data on the Affordable Care Act. It released data Friday that show 81 percent of tax filers “checked the box” to indicate that they had health insurance coverage. Nine percent claimed a health care coverage exemption, and 6 percent paid the fee for remaining uninsured
July 20, 2015Renu Zaretsky
Individual Taxes

T15-0094 - BPC Cadillac Tax Replacement Option, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Level, 2025

July 19, 2015
Individual Taxes

T15-0095 - BPC Cadillac Tax Replacement Option, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2025

July 19, 2015
: Daily Deduction

Is Congress on the road to highway resolution?

Next week on the Hill — A Senate vote on highway funding. Senate Majority Leader Mitch McConnell plans to hold a procedural vote on Tuesday on a six-year funding plan for the Highway Trust Fund. Senators James Inhofe and Barbara Boxer of the Environment and Public Works Committee are working out
July 17, 2015Renu Zaretsky
Individual Taxes: Research report

Analysis of Bipartisan Policy Center (BPC) Cadillac Tax Replacement Option

The Bipartisan Policy Center asked TPC to estimate a proposal to replace the excise tax on high-cost health insurance plans with a limit on the exclusion for employer-provided health benefits and repeal of medical flexible spending accounts. TPC estimates the BPC proposal would increase revenues in
July 17, 2015Gordon B. MerminEric Toder
Individual Taxes: TaxVox

Should The IRS Become a Consumer Agency Instead of a Tax Cop?

In her latest report to Congress , IRS Taxpayer Advocate Nina Olson made the provocative suggestion that her agency completely rethink its mission: “It should transform itself as a tax agency from one that is designed around nabbing the small percentage of the population that actively evades tax to
July 16, 2015Howard Gleckman
: Daily Deduction

All talk and no action keeps highways a bumpy mess.

The House passes a five-month highway patch. But the Senate still wants two years and Finance Chair Orrin Hatch thinks he might be able to fund five. The House bill relies on $8 billion in cats-and-dogs changes in tax administration and budget gimmicks to fund the short-term extension through
July 16, 2015Renu Zaretsky
: TaxVox

Highway Follies: The Never-ending Story

The House has a short-term patch for the Highway Trust Fund… Late Monday night, the House Ways & Means Committee released a plan to cover the Highway Trust Fund with $8.1 billion through mid-December 2015. The patch would use revenue collected by tightening IRS compliance rules. The House could
July 15, 2015Renu Zaretsky
: TaxVox

Plans, Expectations, and Avoidance

An outline of a safe plan: No sharp edges. Democratic presidential candidate Hillary Clinton shared her tax agenda yesterday, but as Howard Gleckman notes, most of her proposals are familiar , including a Buffett tax on very-high income households and small business tax relief. She did not endorse
July 14, 2015Renu Zaretsky