Tag: ‘EITC’

Rewarding Work, Paying by the Mile, a Windfall, and… Tax Magic 


By :: May 21st, 2015

Redesign the EITC to help more low-income workers. TPC’s Elaine Maag thinks that’s the way to go. She explains in her new paper: “A worker credit based on individual earnings, and not contingent on having children at home, could provide substantial benefits to all low-income workers, ease administration for the IRS, and encourage work for childless individuals and secondary […]

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A Redesigned Earned Income Tax Credit Could Encourage Work by Childless Adults

By :: May 20th, 2015

The earned income tax credit (EITC) lifts millions of working families out of poverty, but provides little support to workers without children and some low-wage workers married to other low-wage workers. Congress could fix this flaw by scaling back the EITC and creating a new worker credit that is based on individual earnings and not […]

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Why Do Taxpayers Leave Money on the Table?

By :: May 6th, 2015

My dad taught a teenage me an important lesson when he helped me file my first federal income tax return. I earned the minimum wage at a part-time job, and didn’t have to file. But he explained that I should file, knowing my effort would be rewarded. “You don’t earn enough to owe income taxes,” […]

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Tax Season: It Ain’t Over Till It’s Over

By :: April 13th, 2015

The IRS and the ACA: Working hard and working well. The IRS, thanks to years of preparation since the Affordable Care Act became law in 2010, has managed the current tax filing season smoothly, according to IRS Commissioner John Koskinen, even with new ACA burdens and IRS budget cutbacks. “It’s amazing what the IRS can […]

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Can Expectations Be Too Low?

By :: March 3rd, 2015

Pot tax refunds for all in Colorado? Colorado’s controversial Taxpayer Bill of Rights (TABOR)  says that the state cannot keep more tax revenue than it expected to collect in the year it levies a new tax. Colorado is on track to collect an extra $219 million in revenue in the current fiscal year and $59 million […]

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How Obama’s Tax Plan Will Redistribute Income from the Very Rich To The Poor

By :: January 28th, 2015

President Obama’s latest tax package, which he’ll unveil in detail next week along with his new budget, would lower taxes for low-income households and significantly raise taxes for the highest income 1 percent—those making $663,000 or more, according to new Tax Policy Center estimates.  Middle-income households would see relatively modest changes in their tax bills. […]

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“They Said That They Would Do It and Indeed They Did.” 


By :: December 15th, 2014

“Oh, what a night…” but no shut down. Ted Cruz and a handful of allies succeeded in delaying the Senate vote on the 2015 budget, but they couldn’t stop it. The $1.1 trillion spending bill was approved late Saturday night by a vote of 56-40. And three months into the fiscal year, most of the […]

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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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What You Get for the Money: Will It Be What You Need?

By :: December 4th, 2014

Tax Expirers: On to the Senate. On a roughly party-line vote, the House restored 55 expired tax provisions and extended them for… three weeks. Now the Senate gets to decide whether to go along or to amend the bill, most likely by extending the measures through 2015. And the world turns… Shouldn’t Congress comparison-shop before […]

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Extender Drama: Some Movies Just Aren’t Worth Seeing

By :: December 3rd, 2014

Coming soon to a theater near you: The House embraces a one-year “tax extender” package. It would restore retroactively for 2014 tax breaks affecting all manner of taxpayers—from research-heavy corporations, multinationals, teachers, commuters, and green energy producers, to NASCAR race tracks operators, Puerto Rican rum producers, racehorse owners, and Hollywood moguls. The one year cost: […]

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