Update, September 14: we’ve updated this post to incorporate new Tax Policy Center data on the plan’s cost estimate and its impact on different income groups.
The House is expected to vote this month on its “2.0” tax plan, which would double down on the...
If, as expected, House Republicans vote later this month on their “2.0” tax-cut plan despite its severe flaws, they should fix the glaring shortcomings in its Child Tax Credit (CTC) provision. But there has been no indication that House GOP leaders intend to do so.
Nor would improving the CTC provision do enough to address the overall plan’s flaws. As explained...
The new Congressional Budget Office (CBO) analysis of President Trump’s 2019 budget shows how seriously his tax policies — particularly the 2017 tax law, which will cost $1.9 trillion over the next decade (and even more if policymakers make any of its temporary tax cuts permanent) — are eroding the nation’s revenue base.
CBO estimates...
The President’s plan to raise rents on low-income working families, the elderly, and people with disabilities who receive rental assistance is particularly striking when contrasted with the real estate industry’s large tax benefits from the 2017 tax law. Commercial real...
Among the 2017 tax law’s most flawed parts is a large tax break for certain “pass-through” income — which the owners of businesses such as partnerships, S corporations, and sole proprietorships report on their individual tax returns rather than pay the corporate tax. Its proponents misguidedly argued that it was needed to maintain “parity” (i.e., a level playing field) between these businesses...
Some 61 percent of the benefit from the 2017 tax law’s 20 percent deduction for pass-through income will flow to the top 1 percent of households in 2024, compared to just 4 percent for the bottom two-thirds, we estimate based on new and earlier estimates from the Joint Committee on Taxation (JCT). (See chart.)...
When Congress considers the IRS’s 2019 funding level in the coming weeks, it should embrace President Trump’s proposal to add funding for enforcing tax laws that doesn’t count against the 2011 Budget Control Act’s (BCA) annual cap on overall funding for non-defense appropriations. That approach to IRS enforcement funding has a long bipartisan history and is especially timely now, given the IRS...
With Americans focusing on taxes as the April 17 deadline approaches, these charts show why the tax law enacted in December needs wholesale restructuring: it will increase inequality, reduce revenues at a time when the nation needs to increase them, and invite rampant tax avoidance. As our...
Now that President Trump and congressional leaders have raised annual spending caps for defense and non-defense discretionary programs for 2018 and 2019, policymakers should make additional Internal Revenue Service (IRS) funding a top priority. The recent tax bill poses a once-in-a-generation, multi-dimensional challenge for the IRS, and the President and Congress must give the IRS the funds...
Update, May 4, 2018: We’ve updated a figure in the graphic.
The Republican tax bill not only squanders an important opportunity to help working families by strengthening the Earned Income Tax Credit (EITC), but it also permanently erodes the EITC’s value over time by adopting a different measure for adjusting tax brackets and certain tax provisions each year to account for...
