Topic: Types of Taxes

Who’s Afraid of Income Taxes? New Interactive TPC Tools To Help You Understand the 1040

By :: March 18th, 2015

Need help understanding the 1040 as we enter the homestretch of this year’s tax filing season? The Tax Policy Center has created a new interactive tool to walk you through key parts of the federal income tax, ranging from the mundane to the arcane. In bite-sized pieces, Who’s Afraid of the Form 1040? discusses the main […]

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Cutting Capital Gains Taxes is a Dead End, Not a Step on the Road to a Consumption Tax

By :: March 3rd, 2015

One of the most useful insights of public economics is the “theory of second best.” The idea is that adopting some but not all of the features of optimal policy—the seminal article on the subject called this “piecemeal policy recommendations”—may actually make the economy less efficient. A great example is the argument for eliminating taxes […]

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The Affordable Care Act Tax Filing Season: A View From the Trenches

By :: February 20th, 2015

Several of us at the Tax Policy Center volunteer with Community Tax Aid to help low-income people file their taxes. We’ve had a chance to see, first-hand, how the Affordable Care Act is affecting tax filing. This is the first filing season when taxpayers must navigate the new provisions of the ACA on their 1040s. The […]

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Are Accrued Capital Gains Income in the Year You Die?

By :: February 2nd, 2015

The Tax Policy Center’s tables showing the distribution of President Obama’s new income tax proposals indicate that some middle-class households would pay more tax than under current law. The Administration says they wouldn’t. The reason is that TPC and the White House disagree over what counts as income. The dispute centers on the President’s proposal […]

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Is Obama Closing Retirement Savings Loopholes or Just Curbing Congress’ Generosity?

By :: January 28th, 2015

In his upcoming budget, President Obama will propose to strip away the “loopholes” that permit wealthy individuals to accumulate large amounts in tax-favored retirement plans. He would prohibit a taxpayer from contributing any more to IRAs or other qualified retirement plans once his or her accounts reach a combined value of $3.4 million. For sure, […]

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President Obama Targets the "Angel of Death" Capital Gains Tax Loophole

By :: January 18th, 2015

The President plans to announce in Tuesday’s State of the Union Address new proposals that would raise taxes on capital gains for the wealthiest Americans. The proposal would raise the top tax rate on long-term gains and qualifying dividends to 28-percent (including the Affordable Care Act’s 3.8 percent investment income surtax on high-income taxpayers). The […]

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A Repatriation Tax Holiday for US Multinationals? Four Contagious Illusions

By :: December 10th, 2014

U.S.-based multinationals hold $2.1 trillion in foreign cash and insist that the only way they can feasibly bring that money back home is if Congress grants them a tax holiday—an idea that even President Obama now appears to support. But the argument they (and the President) are making for a holiday is based on a […]

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Why the More Generous Child and Earned Income Tax Credits Should Be Made Permanent

By :: December 3rd, 2014

co-authored with William G. Gale While most of the tax drama these days is focused on the fate of 50+ mostly-business tax breaks that expired nearly a year ago, lawmakers are also debating two provisions that are enormously important to low- and moderate-income households-the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC). Temporary […]

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Bigger, Cleaner, and More Efficient: A Carbon-Corporate Tax Swap

By :: November 21st, 2014

The Cato Institute has organized an online forum to debate pro-growth economic policy reforms. Tax Policy Center scholars Bill Gale, Donald Marron, and Eric Toder have each contributed to the discussion. The United States could reduce its contribution to global climate change and increase domestic prosperity by taxing emissions of carbon dioxide and other greenhouse […]

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Could The U.S. Fix Taxation of Multinational Corporations With A Sales-Based Formula?

By :: August 26th, 2014

Corporate inversions have been the topic of the summer for tax wonks (beats jellyfish and beach traffic, I suppose), but the issue is a classic bit of Washington misdirection. Instead of focusing on the real disease—an increasingly dysfunctional corporate income tax—we are obsessing over a symptom—firms such as Burger King engaging in self-help reform by […]

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