Tag: ‘EITC’

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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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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