Tax expenditures — subsidies delivered through the tax code as deductions, exclusions, and other tax preferences — have been in the news as many policymakers have proposed cutting them to reduce the deficit, finance investments, reduce tax rates, or a combination of those goals. As Tax Day approaches, we’ve updated several backgrounders that explain how the federal government and states...
off the charts
POLICY INSIGHT
BEYOND THE NUMBERS
BEYOND THE NUMBERS
New York Times Calls Senate Finance Committee “Extenders” Vote Fiscally “Imprudent”
April 9, 2014
The Senate Finance Committee has voted to reinstate dozens of temporary tax breaks that expired at the end of 2013 — without offsetting their cost. A recent must-read New York Times editorial called the vote “imprudent.” Indeed, we find it fiscally unsound. ...
Just the Basics: Payroll Taxes
April 9, 2014
As Tax Day approaches, we’ve updated several backgrounders that explain how the federal government and states collect and spend tax dollars. As policymakers and citizens weigh key decisions on how best to shape our future federal government, it’s helpful to examine where the dollars that comprise the budget come from and where they go.
The next in our series of revised...
Just the Basics: Sources of Federal Revenues, Explained
April 8, 2014
As Tax Day approaches, we’ve updated several backgrounders that explain how the federal government and the states collect and spend tax dollars. As policymakers and citizens weigh key decisions on how best to shape our future federal government, it’s helpful to examine where the dollars that comprise the budget come from and where they go.
The next in our series of...
Just the Basics: Where Our Federal Tax Dollars Go
April 7, 2014
As Tax Day approaches, we’ve updated several backgrounders that explain how the federal government and states collect and spend our tax dollars. As policymakers and citizens weigh key decisions on how best to shape our future federal government, it’s helpful to examine where the dollars that comprise the budget come from and where they go.
The...
Want to Help Kids Using Tax Code? Don’t Exclude Working Poor Families
April 3, 2014
The New York Times’ latest “Room for Debate” feature asks whether people without children should subsidize tax breaks for the costs that parents bear.
In my...
Camp Tax Reform Plan Likely Means Bigger Deficits After First Decade
February 26, 2014
House Ways and Means Chairman David Camp is touting Joint Committee on Taxation (JCT) estimates showing that his new tax reform plan is revenue neutral over ten years and would boost economic growth. But, the Camp plan uses timing shifts, phase-ins of tax-rate cuts, and other maneuvers to achieve revenue neutrality in the initial decade. It quite likely would lose revenue in later...
Striking New Studies Show EITC Boosts College Enrollment
February 21, 2014
We’ve previously highlighted research showing that the Earned Income tax Credit (EITC) encourages work — particularly among single mothers — and that children whose families get more income from the credit tend to do better in school. Now, two new working papers strengthen the case that the EITC helps children from low- and moderate-...
State of the Union Tax Roundup
January 29, 2014
In his State of the Union address last night, President Obama mentioned a number of tax policies we’ve written about. Here are some key facts and resources about four topics he discussed.
Corporate tax reform
The President highlighted that the current tax code creates incentives for companies to keep profits offshore, and he reiterated his previous calls for corporate tax...
The Basics of Tax Breaks, Explained
December 4, 2013
Federal policymakers are considering options for reforming the tax code, including scaling back or eliminating credits, deductions, and exemptions. We explain the basics of these subsidies, known as tax expenditures, in a new...