Posts Tagged ‘EITC’

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 […]

Incoming Senate Finance Chair Wyden Outlines His Tax Agenda

Senator Ron Wyden (D-OR), about to become the new chairman of the Senate Finance Committee, said Friday that he aims to eventually rewrite what he described as a “dysfunctional, rotting mess of a carcass that we call the tax code.” But in an acknowledgement of the challenges of tax reform, Wyden said he wants to […]

Questions About Expanding the Childless EITC

As the idea of expanding the “childless EITC” gathers steam, it’s time to start thinking about what the next generation of worker credits should look like. Today’s EITC lifts millions of families out of poverty each year by providing a wage subsidy that encourages work. But it largely skips over childless adults. Politicians from President […]

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 […]

Tax Policy is MIA in the State of the Union

When it comes to tax policy, President Obama’s State of the Union address last night was a model of modesty. There was little new. And, while it is always hard to tell what really matters in a speech that included more than 40 separate initiatives, the president showed little enthusiasm for broad-based tax reform. With […]

A New Look at Who Benefits from Tax Expenditures

Who benefits from the tax credits, deductions and exclusions that have become such an integral part of the modern tax code? Nearly all of us. And that’s why any tax reform that eliminates or scales back many of these preferences in return for lower tax rates is so hard to do. The Tax Policy Center […]

The Year in Taxes: From the Fiscal Cliff to Tax Reform Talks

The year in taxes started with the nation toppling, briefly, over the fiscal cliff. And it ended with some interesting policy proposals on tax reform though little political progress. Remember the fiscal cliff? While that crisis was resolved on New Year’s Day, it really began in 2001, when President George W. Bush signed the Economic […]

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 […]

High Income Households Would Pay Most—But Not All—of the New Taxes in Obama’s 2014 Budget

The revenue proposals included in President Obama’s 2014 budget would, as intended, significantly raise taxes on the highest-income American households. However, despite Obama’s long-standing pledge to protect individuals making below $200,000 (and couples making $250,000 or less) from any tax hikes, even many of those families would pay slightly more than under today’s tax law. […]

The Immigration Debate: Another Reason We Ought to Separate Work and Family Credits

In the realm of needless complexity, the work and family tax credits for low-income households rank near the top. The problem is especially challenging for immigrant families whose children’s legal status and residency determine eligibility for these credits. A few weeks ago, the National Taxpayer Advocate in her Annual Report to Congress joined many others […]