Posts Tagged ‘child tax credit’

Summer Blockbuster? Congress’ Week Is Tax-Action Packed

Another big inversion deal heads to closing. Pharmaceutical giant AbbVie agreed to purchase UK drugmaker Shire, making it the largest US company so far to move its address overseas for lower taxes. The deal, now estimated to be worth about $55 billion, will likely close despite any US action to curb inversions. The Senate may […]

Congress Is Back with Much To Do and Consider

On the Hill this week: The House may vote to make bonus depreciation permanent. The Senate Finance Committee may present a transportation funding plan reflecting a compromise with the House Ways and Means Committee. The House Oversight and Government Reform Committee has scheduled a hearing on incorrect Earned Income Tax Credit payments. There’s a better way […]

President Obama’s FY 2015 Budget

When President Obama proposed his 2015 budget last March, he vowed to cut taxes for working class Americans while making sure high income households pay their “fair share.” New Tax Policy Center estimates show that, like it or not, Obama would do pretty much as he promised. Low-income households would enjoy a tax cut while […]

Misguided Expansion of the Child Tax Credit

Congresswoman Lynn Jenkins (R-KN) wants to expand the child tax credit (CTC) with the Child Tax Credit Improvement Act of 2014. She’s on the right track, but her proposed expansions are ill-targeted and fail to address the credit’s biggest looming issue: the change in refundability that will hit the poorest recipients after 2017. Jenkins’s plan […]

Expanding a Credit, Simplifying a Break, and Cutting Off a Nose to Spite a Face

The House Ways and Means Committee approved an expansion of the child tax credit. A party-line vote approved changes to the Child Tax Credit. The proposal would index the credit to inflation and increase the phaseout range for joint filers to $150,000, twice the range for single filers. The effort would cost $114.9 billion over […]

Mike Lee’s Tax Plan: An Intriguing Idea That Would Add $2.4 Trillion to the Deficit

An ambitious tax reform plan proposed by Sen. Mike Lee (R-UT) would provide generous new tax credits for families with children and repeal the Alternative Minimum Tax, while at the same time eliminating the standard deduction and nearly all itemized deductions. More than 60 percent of households would pay lower taxes than under current law […]

Incoming Senate Finance Chair Wyden Outlines His Tax Agenda

Senator Ron Wyden (D-OR), about to become the new chairman of the Senate Finance Committee, said Friday that he aims to eventually rewrite what he described as a “dysfunctional, rotting mess of a carcass that we call the tax code.” But in an acknowledgement of the challenges of tax reform, Wyden said he wants to […]

Taxes: A Big Gun In The War on Poverty

When Lyndon Johnson declared his War on Poverty 50 years ago this month, he could not have imagined how many battles would be fought through the Tax Code. In the ‘60s and early ‘70s, the safety net was built almost entirely on spending programs.  Back then, policymakers created Medicare, Medicaid, student loan programs, and Head […]

Senator Lee’s New Reform Plan Focuses on Young Children

At an AEI panel discussion earlier this week, Senator Mike Lee (R-Utah) unveiled the Family Fairness and Opportunity Tax Reform Act. The centerpiece is an additional $2,500 tax credit for all children under age 17. The plan retains the $1,000 child tax credit under current law. Unlike the current credit, the new credit would not […]

Do Low-Income Taxpayers Cheat?

My blog last Tuesday on overblown concerns about people falsely claiming subsides under the Affordable Care Act’s insurance exchanges generated a lot of response. Much focused on my assertion that the income tax system operates remarkably well as a largely voluntary program. Their retort: I naively misjudged the willingness of low-income people to cheat. In […]