Tag: ‘earned income credit’

The IRS Could Improve EITC Compliance by Regulating Tax Preparers

By :: November 2nd, 2015

Tax preparers play a critical role helping low income working families collect benefits from the Earned Income Tax Credit. Almost 60 percent of families claiming the EITC in 2010 and 2011 did so with the help of a paid preparer. Unfortunately, preparers can make costly mistakes—errors the taxpayer is ultimately responsible for resolving. The IRS […]

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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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Reduce Tax Rates on Low-Income Families by Extending Tax Phase-Outs

By :: June 29th, 2012

An ominous announcement for a House Ways & Means Committee joint hearing on “how welfare and tax benefits can discourage work” seemed a set-up to attack programs like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) for their apparent disincentive to work. But that’s not what happened.  Rather than eliminate or downsize […]

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Who Benefits From Those Tax Breaks? All of Us.

By :: April 6th, 2011

“We have met the enemy and he is us,” said the cartoonist Walt Kelly. He was talking about preserving the environment, but he could have been describing our national addiction to tax credits, deductions, and exclusions. These tax breaks increase after-tax income for nearly all of us. At a panel discussion this afternoon, my Tax Policy […]

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