This week on Off the Charts, we focused on the federal budget and taxes, welfare reform, state budgets and taxes, and health care.
On the federal budget and taxes, Chye-Ching Huang debunked claims that high-end tax cuts help the economy and pointed to tax policy expert Leonard Burman’s congressional testimony on the myth that low capital gains rates are critical to growth. Paul Van de Water noted that, over their lifetimes, the vast majority of Americans pay federal income tax. Danilo Trisi showed that most Americans who don’t owe federal income tax in a given year are workers, elderly, disabled, or students. We also highlighted our new report on why policymakers should shrink the large tax advantages that capital gains enjoy, revisited a post from April to show who pays taxes, and compiled a roundup of key CBPP analyses, blog posts, and graphics that provide context for the debate around federal taxes.
On welfare reform, LaDonna Pavetti listed five things to know about the work requirements in Temporary Assistance for Needy Families (TANF).
On state budgets and taxes, Michael Mazerov explained that states and localities stand to lose $3 billion a year from federal legislation that would restrict their ability to tax digital goods such as downloaded music. Erica Williams discussed how Florida’s proposed constitutional limit on revenues would harm public services such as education, health care, and infrastructure.
On health care, Sarah Lueck explained that a bill before the House would weaken a critical health reform provision that encourages insurance companies to be more efficient. Matt Broaddus noted new Census data showing that the uninsured rate fell in 20 states last year, while rising in just one.