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Posts on Federal Tax
June 10, 2019

A bill before the House Appropriations Committee would raise funding for IRS tax enforcement and operations support in 2020 — an important, but too modest, step forward after the damaging cuts in IRS enforcement since 2010. Given the depleted state and critical importance of IRS enforcement, lawmakers need to add more.

The U.S. tax system is based on voluntary compliance, which requires...

In Focus: More IRS Enforcement and Operations Support Funds Needed Inside Budget Cap
June 6, 2019

Update, July 2: we’ve added a table at the end of this post showing the number of households, individuals, and children in each state whom the Kildee-Evans bill would benefit.

House Ways and Means Committee members Dan Kildee and Dwight Evans introduced a bill today to substantially expand the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), which would boost the...

Young family of three
June 5, 2019

The 2017 tax law likely has had little effect on economic growth, investment, and wages in 2018, the non-partisan Congressional Research Service (CRS) says in a new report.

The tax law provided large, immediate tax cuts for...

Seal on Dollar Bill Closeup
May 31, 2019

May is a month to celebrate the vibrant cultures and rich heritages of the diverse Asian and Pacific Islander American communities, but it’s also important to advance policy proposals to improve their economic well-being.

Parent and young children
May 21, 2019

The IRS reported yesterday that it audited fewer millionaires and large corporations in fiscal year 2018 than the previous year, continuing a multi-year decline. Since 2010, the President and Congress have cut IRS funding substantially, causing workforce reductions and shortages of top auditors who have the expertise to review...

Audit Rate for Millionaires Has Dropped Steeply Since 2010
May 14, 2019

Low- and moderate-income families in Puerto Rico would get a significant income boost from the Working Families Tax Relief Act, which would substantially expand the Child Tax Credit (CTC) in Puerto Rico as well as nationally and also help the Commonwealth expand...

Puerto Rico EITC Modest Compared to Federal EITC
May 8, 2019

The House Ways and Means Committee will hold a hearing tomorrow on the “tax gap” —between what taxpayers owe the federal government and what they pay on time. It’s particularly timely given the IRS’ depleted enforcement division and the challenges that the 2017 tax law poses for compliance. With some members of both parties...

High-Income Individuals Disproportionately Contribute to the Tax Gap
May 7, 2019

The approach of Mother’s Day is a good time to remember that legislation from Senators Sherrod Brown, Michael Bennet, Dick Durbin, and Ron Wyden, which another 42 senators support, would help 23 million mothers and 49 million children by expanding the Earned...

Parent and child
May 1, 2019

The Treasury Department’s latest proposed regulations on investments in opportunity zones (OZs) — low-income areas designated for special federal tax breaks — state that the program’s purpose is to “increase business activity and economic investment in qualified opportunity zones,” not to improve the economic well-being of those who live there. Indeed, the...

Stack of Bills
April 26, 2019

Taxpayers’ widespread confusion and frustration this past filing season, the first under the 2017 tax law, highlights the important role of tax preparation professionals in helping millions file their returns. Some tax preparers (e.g., certified public accountants) have...

Filing Taxes