Tax — Federal
We've criticized its harsh cuts to many working-poor families and likely adverse long-term fiscal effects, but House Ways and Means Chairman Dave Camp's tax reform proposal has positive elements as well. One that's received little attention is its 25 percent cap on the value of most major deductions and exclusions (such as mortgage interest and employer-provided health insurance), which would make the tax code fairer and more economically efficient.
House Ways and Means Chairman Dave Camp’s tax plan would produce winners and losers — and among the big losers are many families in which parents are struggling to raise their children on poverty wages. A mother with two children who works full time at the minimum wage would lose about $2,000 a year when the plan is fully in effect in 2018 as compared to how she fares under current policies.
- Camp Tax Reform Plan Likely Means Bigger Deficits After First Decade
- Four Timing Gimmicks That Could Disguise Fiscally Irresponsible Individual Tax Reform
- The Problem With Deficit-Neutral Tax Reform
- Working Family Tax Credits Deserve Bipartisan Praise — and Action
- Tax Expenditures: Ripe for Reform, Needed for Deficit Reduction
Building on calls from both sides of the aisle to expand help to low-income childless workers — the sole group of workers that the federal tax code taxes into (and, in many cases, deeper into) poverty — President Obama’s 2015 budget would strengthen the Earned Income Tax Credit (EITC) for this left-out group.
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.
March 7, 2014
March 5, 2014
March 5, 2014
Revised March 5, 2014
March 4, 2014
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