Tax — Federal
Obama’s Education Tax Proposals Would Help Middle-Class Families, Not Hurt Them as Opponents Inaccurately Claim
Some critics claim that President Obama’s proposal to streamline and better target tax credits for higher education represents an attack on middle-class families, particularly because of the limits it would impose on so-called “529” accounts. That’s backward: the plan overall would do more to help both middle-class and lower-income families afford college.
- Greenstein Statement: White House Tax Proposal Will Benefit Economic Growth and Help Millions of Middle- and Lower-Income Families
- President’s Capital Gains Tax Proposals Would Make Tax Code More Efficient and Fair
Each year millions of eligible workers risk missing out on receiving the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) because they do not know they qualify, do not know how to claim the credits, or do not know where to find free tax filing assistance. Outreach efforts can help ensure that eligible workers can receive the tax credits they’ve earned. January 30, 2015 is EITC Awareness Day.
House Republicans have amended House rules to require the use of “dynamic scoring” for official cost estimates of tax reform and other major legislation.
The income tax on individuals and the payroll tax, which is deducted from workers’ wages and used to help finance Social Security and Medicare, each made up about 40 percent of federal revenues in 2010. The federal government also collects revenue from corporate taxes, excise taxes, and other sources.
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.
Updated January 20, 2015
January 18, 2015
January 17, 2015
Revised January 16, 2015
Policymakers Often Overstate Marginal Tax Rates for Lower-Income Workers and Gloss Over Tough Trade-Offs in Reducing Them
January 12, 2015
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