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CBO Forecast of Weak Revenues Under Trump Policies Shows Impact of 2017 Tax Law

May 24, 2018

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...

Under Trump Policies, Revenues Will Fall Well Below Historical Average Despite Strong Economy

Real Estate Tax Breaks, Low-Income Rent Hikes Reflect Skewed Priorities

May 7, 2018

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...

Money House #2

Pass-Throughs and Corporations Had No Parity to Maintain

May 1, 2018

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...

Form 1040 And Refund Check

JCT Highlights Pass-Through Deduction’s Tilt Toward the Top

April 24, 2018

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.)...

2017 Tax Law's Pass-Through Deduction Heavily Tilted Toward Wealthy

Trump Administration’s Tax Enforcement Funding Mechanism Deserves Support

April 23, 2018

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...

Three-Fourths of IRS Staff Losses Due to Funding Cuts Have Been in Tax Enforcement

As Tax Day Approaches, These Charts Show Why the New Tax Law Is Fundamentally Flawed

April 10, 2018

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...

New Tax Law Delivers Large Tax Cuts to Most Well-Off

IRS Must Now Be a Top Funding Priority

February 16, 2018

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...

IRS Funding Has Fallen Sharply

Instead of Boosting Working-Family Tax Credit, GOP Tax Bill Erodes It Over Time

December 21, 2017

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...

GOP Tax Bill Erodes Earned Income Tax Credit Over Time by Slowing its Growth With Inflation

Republicans Chose Corporate Shareholders Over Working Families

December 19, 2017

The final Republican tax bill, which Republicans are rushing to pass this week, will ultimately raise taxes on many lower- and middle-income households and leave 13 million more people uninsured, to pay for permanent tax cuts for profitable corporations — the opposite of their claim that...

Final GOP Tax Bill Pays for Permanent Corporate Tax Cuts With Individual Tax Increases

GOP’s Tax Conference Priority: Tax-Free Inheritances or Less Harm to Working Families?

December 7, 2017

Giving the heirs of the nation’s wealthiest estates the largest possible estate tax cut would be a strikingly poor choice. 

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