: Daily Deduction

One Vote Down, Many More To Go

House Ways & Means completes its markup of Chairman Neal’s tax bill.
September 16, 2021Renu Zaretsky
Individual Taxes: IndividualHistorical Data

Effective tax rate by AGI

Average effective tax rates, number of tax returns, total adjusted gross income, and total tax after credits, for highest AGI groups, 1945 to 2015.
September 15, 2021
Individual Taxes: TaxVox

Effective Income Tax Rates Have Fallen for The Top One Percent Since World War II

While average effective tax rates barely changed in the US from 1945 to 2015, the average tax rates of high-income households fell sharply—from about 50...
September 15, 2021Robert McClellandNikhita Airi
Individual Taxes: TaxVox

Families Planned to Use Child Tax Credit to Pay Bills but Some Were Confused About Eligibility

Starting in July, many parents began receiving monthly payments of the Child Tax Credit (CTC). A new IPSOS survey as well as Urban Institute interviews...
September 15, 2021Elaine MaagPoonam GuptaElaine Waxman
: Daily Deduction

A Big Bill, A Distributional Analysis

Chairman Neal’s tax bill: Big, bold, with hits and misses.
September 15, 2021Renu Zaretsky
: Daily Deduction

Budget Bill Markup Continues

Moving a tax bill.
September 14, 2021Renu Zaretsky
Federal Budget and Economy: TaxVox

Neal’s Tax Bill Is Big And Bold, With Hits and Misses

The most important thing to know about the tax bill proposed by House Ways & Means Committee Richard Neal (D-MA) is that it’s big. The...
September 14, 2021Howard Gleckman
: Daily Deduction

A Big To-Do List Awaits Congress’ Return

Ways & Means Democrats release their tax plan.
September 13, 2021Renu Zaretsky
Federal tax law exempts credit unions from paying corporate income taxes. According to the Treasury, this exemption will cost $25 billion in forgone tax revenue between 2021 and 2030.
September 13, 2021
: TaxVox

Keeping Child Tax Credit Fully Refundable Is Critical to Low-Income Families

As Congress debates whether to extend the major, but temporary, changes to the Child Tax Credit (CTC) it adopted earlier this year, a crucial question...
September 10, 2021Elaine Maag
Individual Taxes: TaxVox

Was The Senate’s Heated Crypto Tax Reporting Debate Much Ado About Nothing?

When Congress debates major legislation, the public often focuses on a single narrow issue—one frequently irrelevant to the main point of the bill. It happened...
September 10, 2021Howard Gleckman
Individual Taxes: Distribution Tables by Income Percentile

T21-0229 – Tax Benefit of the Child Tax Credit (CTC), Extend ARP Provisions Including Full Refundability, by Expanded Cash Income Percentiles, 2022

Distribution of the federal tax benefit of the Child Tax Credit (CTC) assuming extension of the CTC credit increase amount and increase in eligible age...
September 9, 2021
Individual Taxes: Distribution Tables by Income Level

T21-0228 – Tax Benefit of the Child Tax Credit (CTC), Extend ARP Provisions Including Full Refundability, by Expanded Cash Income Level, 2022

Distribution of the federal tax benefit of the Child Tax Credit (CTC) assuming extension of the CTC credit increase amount and increase in eligible age...
September 9, 2021
Individual Taxes: Distribution Tables by Income Level

T21-0226 – Tax Benefit of the Child Tax Credit (CTC), Extend ARP Provisions but Retain Current-Law Partial Refundability, by Expanded Cash Income Level, 2022

Distribution of the federal tax benefit of the Child Tax Credit (CTC) assuming extension of the CTC credit increase amount and increase in eligible age...
September 9, 2021
Individual Taxes: Distribution Tables by Income Percentile

T21-0227 – Tax Benefit of the Child Tax Credit (CTC), Extend ARP Provisions but Retain Current-Law Partial Refundability, by Expanded Cash Income Percentiles, 2022

Distribution of the federal tax benefit of the Child Tax Credit (CTC) assuming extension of the CTC credit increase amount and increase in eligible age...
September 9, 2021
Individual Taxes: Distribution Tables by Income Level

T21-0224 – Tax Benefit of the Child Tax Credit (CTC), Current Law, by Expanded Cash Income Level, 2022

Distribution of the federal tax benefit of the Child Tax Credit (CTC) under current law, by expanded cash income level for calendar year 2022.
September 9, 2021
Individual Taxes: Distribution Tables by Income Percentile

T21-0225 – Tax Benefit of the Child Tax Credit (CTC), Current Law, by Expanded Cash Income Percentile, 2022

Distribution of the federal tax benefit of the Child Tax Credit (CTC) under current law, by expanded cash income percentile for calendar year 2022.
September 9, 2021
Individual Taxes: Revenue Tables

T21-0223 – Tax Expenditure for the Child Tax Credit ($ billions), 2022-25

Aggregate tax expenditure amount ($ billions) for the child tax credit (CTC) for calendar years 2022-25 under three scenarios: current law; extension of the American...
September 9, 2021
Individual Taxes: TaxVox

An Expanded Child Tax Credit Would Reduce Child Poverty to Below 10 Percent in Nearly All States

The American Rescue Plan’s (ARP) expanded Child Tax Credit (CTC) would reduce child poverty in a typical year below 10 percent in 47 states –...
September 8, 2021Elaine Maag
State and Local Issues: Research report

State Tax and Economic Review, 2021 Quarter 1

Strong Tax Revenue Growth in the First Quarter of 2021, but Tax Volatility and Fiscal Uncertainties Continue
States reported strong revenue growth in the first quarter of 2021, but there is still large variation in revenue performance across states. Over a 12-month period (April 2020 through March 2021), state total tax revenues increased 0.6 percent compared to the same period one year earlier.
September 8, 2021Lucy Dadayan
: Daily Deduction

Will The Wealthy Pay Higher Taxes Sooner, Or Later… Or Never?

It’s increasingly unclear.
September 7, 2021Renu Zaretsky
The minimum cash wage for most tipped employees is equal to the federal rate of $2.13 an hour in 16 states, higher than $2.13 but lower than their own state minimum wage in 27 states and DC, and equal to their state minimum wage in 7 states.
September 6, 2021
Business Taxes: Distribution Tables by Income Percentile

T21-0221 – Sources of Flow-Through Business Income by Expanded Cash Income Percentile; Current Law, 2021

Distribution of tax units with flow-through business income by source of flow-through business income and expanded cash income percentile, under current law for 2021 as...
September 3, 2021
Business Taxes: Other Tables

T21-0222 – Sources of Flow-Through Business Income by Statutory Marginal Tax Rate; Current Law, 2021

Distribution of tax units with flow-through business income by source of flow-through business income and statutory marginal tax rate, under current law for 2021 as...
September 3, 2021
Business Taxes: Distribution Tables by Income Level

T21-0217 – Distribution of Business Income, by Expanded Cash Income Level; Current Law, 2021

Distribution of tax units with business income by expanded cash income level, under current law for 2021 as of September 2, 2021.
September 3, 2021