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Elaine Maag

Reforming the Child Tax Credit: How Different Proposals Change Who Benefits

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

Investing in Work by Reforming the Earned Income Tax Credit

From The Briefing Book

From the Briefing Book

How does the federal tax system affect low-income households?

December 21, 2015 by tpc-admin

How does the federal tax system affect low-income households?

Most low-income households do not pay federal income taxes, typically because they owe no tax (as their income is lower than the standard deduction) or because tax credits offset the tax they would owe. Some receive substantial rebates via refundable tax credits. However, nearly all low-income workers are subject to the payroll tax.

Read more about How does the federal tax system affect low-income households?

How do taxes affect income inequality?

December 6, 2018 by tpc-admin

How do taxes affect income inequality?

Because high-income households pay a larger share of their income in total federal taxes than low-income households, federal taxes reduce income inequality. But federal taxes have done little to offset increasing income inequality over the past 40 years.

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Why do low-income families use tax preparers?

December 21, 2015 by tpc-admin

Why do low-income families use tax preparers?

Many low-income families owe no income tax but still must file a tax return to receive refundable tax credits, including the earned income tax credit. Those who do file often seek help, which nearly always comes from a paid preparer. The cost of that help erodes the net value of refundable credits. That cost might be worth bearing if preparers helped their clients claim tax benefits that otherwise might be missed, but many don’t.

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