Posts Tagged ‘EITC’

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


“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 […]

Will Immigrants Get A Tax Windfall From Refundable Credits?

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 […]

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

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 […]

Extender Drama: Some Movies Just Aren’t Worth Seeing

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: […]

Tax Deals: Will Everything Old Be New Again?

Dave Camp on tax reform: “It can be done.” Retiring House Ways & Means Chair Dave Camp remains optimistic. The Hill reports that a deal to extend expiring tax breaks could give Camp’s successor, Paul Ryan, a chance to secure broad GOP support for a tax reform plan. About that tax extender deal… The White […]

“Dead Reform Walking:” On Fairness, Immigration, and Spending

A Senator says “no way” to a bill that won’t see December’s light of day. As far as the lame-duck Congress is concerned, the Marketplace Fairness Act is dead: House Speaker John Boehner assured as much last week. Senator Ted Cruz has added his two cents (tax-free)  insisting it is  the “height of lunacy” to […]

A Billionaire Saves, Two Words Disappear, and Three Provisions Protect

There’s more than one way to skin a cat (and reduce taxes). Warren Buffett, chairman of Berkshire Hathaway, has made a swap for Procter & Gamble’s interest in Duracell. The “cash-rich split-off” means that Berkshire Hathaway bought Duracell in exchange for its appreciated P&G stock, worth $4.7 billion. Capital gains taxes are not incurred since […]

What Ronald Reagan Didn’t Say About the EITC

I like the Earned Income Tax Credit (EITC). It encourages work and allows millions of low-wage workers and their kids to escape a life of poverty. Democrats support it as a critical part of the safety net. Republicans back it because it rewards work and family. Just last week, House Budget Committee Chairman Paul Ryan […]

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 […]

The Many Moving Parts of Camp’s Tax Reform for Low-Income Families

House Ways & Means Committee Chair Dave Camp’s tax reform plan would make many changes to the two major refundable tax credits aimed at assisting low- and moderate-income working families—the earned income tax credit (EITC) and the Child Tax Credit (CTC).  It isn’t easy to keep track of all the moving parts, but it appears […]