Center on Budget and Policy Priorities

Tax — Federal

History Contradicts Claim That President’s Budget Would Harm Small Business Job Creation

"Critics have claimed that President Obama’s proposal to roll back tax cuts for families with incomes above $250,000 would kill job growth in the small business sector. But under the Clinton Administration, when the tax treatment of high-income families was very similar to what President Obama has proposed, small businesses generated jobs at twice the rate as under the Bush tax code."

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Topics

Basics

The income tax on individuals and the payroll tax, which is deducted from workers' wages and used to help finance Social Security and Medicare, together funded 75 percent of federal spending in 2007. Business or corporate taxes contributed another 14 percent. Other federal taxes include the estate tax on the heirs of large estates.

Policy Basics:
- The 2001 and 2003 Tax Cuts
- Where Do Our Federal Tax Dollars Go?
- The Estate Tax
- The Earned Income Tax Credit
- Deficits, Debt, and Interest

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The Center analyzes major tax proposals, examining their likely effects on the economy and on the government’s ability to address critical national needs, especially over the long term. We place particular emphasis on the effects of tax proposals on households at different income levels. In addition, we analyze trends in the level of federal revenues, income distribution, and tax burdens.