Tag: ‘EITC’

The White House Quietly Rolls Out Its Last Tax and Budget Plan

By :: February 9th, 2016

If the White House wanted to attract attention to its final budget, it could not have picked a worse day to make it public. With official Washington obsessed with today’s New Hampshire primary, the 2017 budget barely caused a ripple. In case there was any question about its fate on Capitol Hill, congressional Republicans had […]

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If Banning Negligent Low-Income Households From Taking Tax Credits Is Such a Great Idea, Why Stop With Them?

By :: January 7th, 2016

Congress has banned more low-income families who file erroneous tax returns from receiving refundable credits. If lawmakers think this is such a terrific idea, why stop at low-income households? For instance, why shouldn’t Congress bar trade associations from claiming tax-exempt status if they file improper reports to the IRS? Or prohibit hedge fund managers from enjoying preferential […]

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Back at the Tax Extender Trough

By :: December 1st, 2015

For years, Congress has struggled with what to do with scores of temporary tax breaks that have come to be known as the “tax extenders.”   The usual resolution: Lawmakers fiddle for months. Then, sometime in December, they mindlessly continue the immortal mostly-business tax breaks for another year or two. Last year, Congress never could agree […]

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The GOP Debate: Squabbles Over Refundable Credits, Deductions, and Conservatisim

By :: November 11th, 2015

Last night’s GOP presidential debates (here’s a transcript of the main event) highlighted some important tax policy contrasts among the candidates. One thought refundable credits are conservative economic policy while another did not.  Nearly all would preserve deductions for mortgage interest and charitable gifts but one would ditch them. One worried about what his rivals’ […]

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The IRS Could Improve EITC Compliance by Regulating Tax Preparers

By :: November 2nd, 2015

Tax preparers play a critical role helping low income working families collect benefits from the Earned Income Tax Credit. Almost 60 percent of families claiming the EITC in 2010 and 2011 did so with the help of a paid preparer. Unfortunately, preparers can make costly mistakes—errors the taxpayer is ultimately responsible for resolving. The IRS […]

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Despite Promises, Jeb Bush’s Tax Plan Wouldn’t Eliminate Marriage Penalties

By :: September 16th, 2015

GOP presidential candidate Jeb Bush offered a tax plan last week that he says “eliminates the marriage penalty.” But it may not help many low-income working families. A married couple is penalized if it pays more tax filing a joint return than if each spouse could file individually. Conversely, marriage bonuses occur when marriage lowers […]

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One more step for equality, and two views on state EITCs

By :: June 29th, 2015

Congress is in recess. The Daily Deduction will return to its regular schedule on Monday, July 6. Wyden promises tax changes in the wake of the Supreme Court’s decision on same-sex marriage. Following the Obergefell v. Hodges decision, senior Senate Finance Committee Democrat Ron Wyden said Friday, “As lawmakers, we must now turn our attention […]

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Combined Tax Rates and Creating a 21st Century Social Welfare Budget

By :: June 26th, 2015

In testimony yesterday before a joint hearing of two House subcommittees, I urged Congress to modernize the nation’s social welfare programs to focus on early childhood, quality teachers, more effective work subsidies, and improved neighborhoods. One way lawmakers can shift their gaze is by considering the effects of combined marginal tax rates that often rise steeply […]

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Does Saying “No Chance” Increase the Chances of Reform?

By :: June 10th, 2015

The House votes to ban taxes on Internet access. Again. But senators still want to link the prohibition to a separate measure that would clarify the ability of states to require online sellers to collect sales taxes. Like that little icon you get when your computer is stuck: The two issues just keep on spinning. […]

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How Many Americans Get Government Assistance? All of Us

By :: June 4th, 2015

The other day, the Census Bureau put out a new report that concluded about one-in-five Americans received government benefits in 2012. But the study, called Dynamics of Economic Well-Being: Participation in Government Programs, 2009–2012: Who Gets Assistance, takes a far too narrow view about who gets the help. A more accurate estimate of the share of Americans […]

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