Posts Tagged ‘earned income tax credit’

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 […]

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 […]

Variation in EITC Take-up, County by County

The Earned Income Tax Credit (EITC) is one of our nation’s most effective anti-poverty policies, bringing 10.1 million families out of poverty in 2012. The EITC is designed to reward work by increasing wages for low-income workers; workers with low incomes can receive up to an additional 45 cents for every dollar they earn. Recognizing […]

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 […]

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 […]

Earned Income Tax Awareness Day

As tax filing season approaches, the IRS is reminding  low-income families about the Earned Income Tax Credit (EITC). The EITC provides a wage subsidy for low- and moderate-income families and is an important income support for many.  In 2012, a family with two children could receive an income boost of 40 cents for every dollar […]

About the 47 Percent Who Don’t Pay Federal Income Tax: Mitt, Meet Andrea

About that 47 percent: Let me introduce you to Andrea. When I met her a couple of years ago, she was a home health aide who typically worked six days-a-week and often put in 50 hours. She loved her work, but it is not something most of us would want to do. According to the […]

New Plan Expands EITC Benefits for Families with Young Children

The Earned Income Tax Credit (EITC) provides a significant income boost to low-income single-parent families, but can severely penalize those families if the parent marries. A new plan from Brooklyn College economist Robert Cherry could sharply reduce that problem while sharply increasing benefits for families with young children – particularly those with married parents. Analysts […]

Not All Tax Breaks Are Created Equal

It has become fashionable (I am happy to say) for  politicians to talk about ending or at least scaling back tax subsidies. But  pols mean very different things when they say this. And new analysis by the Tax  Policy Center shows that whether they help you or not often depends on how much  money you […]