: Daily Deduction

The Incredible Shrinking Tax Refund

Starting to get awkward: Average tax refunds remain lower than last year.
February 25, 2019Renu Zaretsky
Most individual taxpayers claim the standard deduction, as opposed to itemizing their deductions. The share of itemizers varies largely by income, from 5% of those with income under $20,000 to 93% of those with income above $500,000.
February 25, 2019
: Daily Deduction

A TCJA loophole and stock buybacks

A Park Avenue loophole from the SALT deduction cap.
February 22, 2019Renu Zaretsky
Individual Taxes: TaxVox

How To Turn Tax Refunds Into Savings

The ongoing flap over tax refunds has once again highlighted a serious issue: Americans use tax withholding from their paychecks as a major savings tool...
February 22, 2019Howard Gleckman
: TaxVox

Tax Increases Encourage Lower Earners and Wives To Retire Early

Imagine a husband or wife near retirement age. Their tax rates go up. What do they do? I’ve published a new study, along with Kevin...
February 21, 2019Robert McClelland
: TaxVox

Tackling Stock Buybacks: Too Little, Too Late from Foreign Investors

The 2017 Tax Cuts and Jobs Act (TCJA) lowered taxes for US corporations, with the stated goal of creating jobs throughout the US . In...
February 21, 2019Steven M. Rosenthal
: Daily Deduction

High Taxes, Big Deals, and State Actions

Another poll shows that Americans largely support higher taxes on the wealthy.
February 21, 2019Renu Zaretsky
Individual Taxes: Research report

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 a
February 21, 2019Robert McClellandJohn IselinKevin PiercePhilip Stallworth
: Daily Deduction

Child Care, a Credit, and a Denial

What Warren would do with her tax hike.
February 20, 2019Renu Zaretsky
: Daily Deduction

Change and Counting Chickens

Key TCJA author moves on to greener pastures.
February 19, 2019Renu Zaretsky
Individual Taxes: Journal Article

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 is
February 19, 2019C. Eugene Steuerle
: Daily Deduction

Emergencies, Tax Credits, and Stock Buybacks

President Trump signs a spending bill to keep government open, declares a national emergency to fund a border wall.
February 18, 2019Renu Zaretsky
Alcohol excise taxes raised $9.9 billion in 2017. Inflation-adjusted revenues have declined over time as rising price levels have eroded constant per-unit tax rates; tax rates were last raised in 1991, and were temporarily lowered in 2017.
February 18, 2019
Individual Taxes: Research report

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:
February 18, 2019Isabel V. SawhillChristopher Pulliam
: Daily Deduction

A Deal, A Declaration, and a Change of Heart

Signed and Declared?
February 15, 2019Renu Zaretsky
Individual Taxes: TaxVox

Better Than Flowers And Chocolate: TPC Releases Its Updated Marriage Penalty and Bonus Calculator

Just in time for Valentine’s Day! Before you ask your beloved to marry you tonight, you might want to check out the Tax Policy Center’s...
February 14, 2019Philip Stallworth
: Daily Deduction

Be My Tax Valentine?

Roses are red, budget deals are due…
February 14, 2019Renu Zaretsky
: Daily Deduction

Budget Deal, or Not

“Can’t say I’m happy, but…”
February 13, 2019Renu Zaretsky
: Daily Deduction

Missing the Refund Mark

Treasury: News coverage of slow tax refunds is “misleading.”
February 12, 2019Renu Zaretsky
Individual Taxes: TaxVox

It’s About Your Total Tax Liability, Not Your Refund

People, if you want to know whether the Tax Cuts and Jobs Act (TCJA) was good for you or not, stop obsessing about the size...
February 12, 2019Howard Gleckman
Federal Budget and Economy: Research report

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 scenario
February 12, 2019Alan J. AuerbachWilliam G. GaleAaron Krupkin
: Daily Deduction

A Slower Start to the Tax Season

Tax refunds are coming in more slowly and smaller, so far.
February 11, 2019Renu Zaretsky
The share of federal taxes borne by the top 1% of households by income has nearly doubled from 14% in 1979 to 26% in 2015. This increase mostly reflects a growth in their share of total before-tax income, which has increased from 9% in 1979 to almost 17% in 2015.
February 11, 2019
: TaxVox

Congress Should Request The President’s Tax Returns

I testified before the Ways and Means Subcommittee on Oversight yesterday on whether presidents, vice presidents, and candidates for these offices should disclose their tax...
February 8, 2019Steven M. Rosenthal
: Daily Deduction

“Let’s give ‘em something to talk about.”

“People are talking…” President Trump is “open to talking about” revising the TCJA’s cap on SALT.
February 8, 2019Renu Zaretsky