Tax — Federal
Unless Congress acts, key Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) provisions will expire at the end of 2017, pushing 17 million people — including 8 million children — into or deeper into poverty.
Our new interactive calculator allows you to explore what’s at stake for low- and moderate-income families if three important provisions expire at the end of 2017.
As the current uptick in inversions shows, corporate tax lawyers have found ways around the 2004 anti-inversion provisions. Policymakers should approve legislation that strengthens the bipartisan response from a decade ago — and soon. Waiting for corporate or international tax reform will only invite more tax avoidance-driven corporate exits.
Additional tax analyses:
- Policymakers Should Reject Effort to Make “Bonus Depreciation” Permanent
- Cuts in IRS Budget Have Compromised Taxpayer Service and Weakened Enforcement
- Repatriation Tax Holiday Would Lose Revenue and Is a Proven Policy Failure
- Repatriation Tax Holiday Can’t “Pay for” Anything, Figures Show
- Without Extending Key 2009 Improvement, Indexing Child Tax Credit Leaves Out Many Families
- Latest House Tax Bill Prioritizes Credit for Affluent Over Working-Poor Families
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 July 30, 2014
Commentary: Ryan “Opportunity Grant” Proposal Would Likely Increase Poverty and Shrink Resources for Poverty Programs Over Time
July 24, 2014
July 22, 2014
Commentary: Policymakers Often Overstate Marginal Tax Rates — And Understate Trade-Offs In Reducing Them
July 22, 2014
Testimony of Jared Bernstein, Senior Fellow, Center on Budget and Policy Priorities, Before the Joint Economic Committee
July 15, 2014
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