Tag: ‘child tax credit’

Combined Tax Rates and Creating a 21st Century Social Welfare Budget

By :: June 26th, 2015

In testimony yesterday before a joint hearing of two House subcommittees, I urged Congress to modernize the nation’s social welfare programs to focus on early childhood, quality teachers, more effective work subsidies, and improved neighborhoods. One way lawmakers can shift their gaze is by considering the effects of combined marginal tax rates that often rise steeply […]

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How Many Americans Get Government Assistance? All of Us

By :: June 4th, 2015

The other day, the Census Bureau put out a new report that concluded about one-in-five Americans received government benefits in 2012. But the study, called Dynamics of Economic Well-Being: Participation in Government Programs, 2009–2012: Who Gets Assistance, takes a far too narrow view about who gets the help. A more accurate estimate of the share of Americans […]

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Do Senators Lee and Rubio Have a Secret Plan to Help Poor Families?

By :: March 27th, 2015

In its analysis of the tax reform plan proposed recently by Senators Marco Rubio (R-FL) and Mike Lee (R-UT), the Tax Foundation assumed the proposal would make the new personal credit ($2,000 for singles and $4,000 for married couples) fully refundable. This assumption helps explain why the group concluded the Lee-Rubio plan would be highly progressive. Full refundability […]

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Credits, Collections and Refunds

By :: March 11th, 2015

The Department of Homeland Security didn’t shut down, but… fallout remains over the President Obama’s executive orders on immigration and their effect on low-income tax breaks. Senate Finance Committee Chair Orrin Hatch wants the Administration to say how many immigrants protected from deportation would receive Social Security numbers. He doesn’t believe the Social Security Administration’s […]

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Will Immigrants Get A Tax Windfall From Refundable Credits?

By :: December 12th, 2014

In the end-of-the-year congressional scramble, lawmakers scuttled an effort to permanently extend a number of tax breaks—largely because many feared it would open the door to widespread use of refundable tax credits by undocumented immigrants covered by President Obama’s recent executive order.  But is their concern justified? Three sets of rules related to residency and […]

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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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ACA Tax Subsidies Face Risk; IRS Enforcement Is Overtaxed

By :: July 23rd, 2014

Two appeals courts deliver opposing rulings on Affordable Care Act tax subsidies. The DC Circuit Court ruled yesterday that the tax credits can only go to residents in states that run their own  health exchanges. In Richmond, VA, the 4th Circuit Court said the ACA language isn’t clear, so the tax credits are also available […]

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Summer Blockbuster? Congress’ Week Is Tax-Action Packed

By :: July 21st, 2014

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 […]

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Congress Is Back with Much To Do and Consider

By :: July 7th, 2014

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 […]

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President Obama’s FY 2015 Budget

By :: July 2nd, 2014

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 […]

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