Tax Policy Center

EITC

Campaigns, Proposals, and Reforms: TaxVox

TPC Updates Analysis of Ted Cruz’s Tax Proposal To Reflect a Change in His EITC Proposal

After the Tax Policy Center published our analysis of Senator Cruz’s tax plan, the campaign told us that they also intend to expand the Earned Income Tax Credit (EITC) . This change would modestly increase after-tax incomes of low-income families while increasing the cost of the overall Cruz
March 2, 2016Leonard E. Burman
Federal Budget and Economy: TaxVox

The White House Quietly Rolls Out Its Last Tax and Budget Plan

If the White House wanted to attract attention to its final budget , it could not have picked a worse day to make it public. With official Washington obsessed with today’s New Hampshire primary, the 2017 budget barely caused a ripple. In case there was any question about its fate on Capitol Hill,
February 8, 2016Howard Gleckman
Individual Taxes: TaxVox

If Banning Negligent Low-Income Households From Taking Tax Credits Is Such a Great Idea, Why Stop With Them?

Congress has banned more low-income families who file erroneous tax returns from receiving refundable credits. If lawmakers think this is such a terrific idea, why stop at low-income households? For instance, why shouldn’t Congress bar trade associations from claiming tax-exempt status if they file
January 7, 2016Howard Gleckman
Federal Budget and Economy: TaxVox

Back at the Tax Extender Trough

For years, Congress has struggled with what to do with scores of temporary tax breaks that have come to be known as the “tax extenders .” The usual resolution: Lawmakers fiddle for months. Then, sometime in December, they mindlessly continue the immortal mostly-business tax breaks for another year
November 30, 2015Howard Gleckman
Federal Budget and Economy: TaxVox

The GOP Debate: Squabbles Over Refundable Credits, Deductions, and Conservatisim

Last night’s GOP presidential debates ( here’s a transcript of the main event) highlighted some important tax policy contrasts among the candidates. One thought refundable credits are conservative economic policy while another did not. Nearly all would preserve deductions for mortgage interest and
November 11, 2015Howard Gleckman
Individual Taxes: TaxVox

The IRS Could Improve EITC Compliance by Regulating Tax Preparers

Tax preparers play a critical role helping low income working families collect benefits from the Earned Income Tax Credit. Almost 60 percent of families claiming the EITC in 2010 and 2011 did so with the help of a paid preparer. Unfortunately, preparers can make costly mistakes—errors the taxpayer
November 2, 2015Elaine Maag
Campaigns, Proposals, and Reforms: TaxVox

Despite Promises, Jeb Bush’s Tax Plan Wouldn’t Eliminate Marriage Penalties

GOP presidential candidate Jeb Bush offered a tax plan last week that he says “eliminates the marriage penalty.” But it may not help many low-income working families. A married couple is penalized if it pays more tax filing a joint return than if each spouse could file individually. Conversely,
September 16, 2015Roberton C. Williams
: TaxVox

One more step for equality, and two views on state EITCs

Congress is in recess. The Daily Deduction will return to its regular schedule on Monday, July 6. Wyden promises tax changes in the wake of the Supreme Court’s decision on same-sex marriage. Following the Obergefell v. Hodges decision, senior Senate Finance Committee Democrat Ron Wyden said Friday
June 29, 2015Renu Zaretsky
Individual Taxes: TaxVox

Combined Tax Rates and Creating a 21st Century Social Welfare Budget

In testimony yesterday before a joint hearing of two House subcommittees, I urged Congress to modernize the nation’s social welfare programs to focus on early childhood, quality teachers, more effective work subsidies, and improved neighborhoods. One way lawmakers can shift their gaze is by
June 26, 2015C. Eugene Steuerle
: Daily Deduction

Does Saying “No Chance” Increase the Chances of Reform?

The House votes to ban taxes on Internet access. Again. But senators still want to link the prohibition to a separate measure that would clarify the ability of states to require online sellers to collect sales taxes. Like that little icon you get when your computer is stuck: The two issues just
June 10, 2015Renu Zaretsky