Tag: ‘EITC’

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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Tax Deals: Will Everything Old Be New Again?

By :: December 1st, 2014

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 […]

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

By :: November 19th, 2014

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 […]

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

By :: November 14th, 2014

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 […]

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What Ronald Reagan Didn’t Say About the EITC

By :: July 30th, 2014

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 […]

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President Obama’s FY 2015 Budget

By :: July 2nd, 2014

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 […]

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