Tag: ‘income tax’

ACA Effects and Estimates

By :: July 20th, 2015

Treasury shares tax filing data on the Affordable Care Act. It released data Friday that show 81 percent of tax filers “checked the box” to indicate that they had health insurance coverage. Nine percent claimed a health care coverage exemption, and 6 percent paid the fee for remaining uninsured without an exemption. About 4 percent still need […]

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Who’s Afraid of Income Taxes? New Interactive TPC Tools To Help You Understand the 1040

By :: March 18th, 2015

Need help understanding the 1040 as we enter the homestretch of this year’s tax filing season? The Tax Policy Center has created a new interactive tool to walk you through key parts of the federal income tax, ranging from the mundane to the arcane. In bite-sized pieces, Who’s Afraid of the Form 1040? discusses the main […]

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Taxing Employer-Sponsored Insurance Would Hike Social Security Benefits But Boost Federal Coffers

By :: May 8th, 2014

The tax subsidy for employer-sponsored health insurance is huge. Not only are the premiums exempt from income tax, they are also immune from Social Security payroll tax. The two subsidies combined will add more than $1.6 trillion to the deficit over the next five years alone. But because that income is not included in the […]

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What’s Behind That 1040? Check Out TPC’s Interactive Tax Forms

By :: April 9th, 2014

Federal income taxes are complicated. That’s why roughly 90 percent of us either hire someone to prepare our tax returns or use computer software to do the job on our own. Only a tenth of us actually sit down and fill out the forms by hand. But it’s still important to understand what goes onto […]

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The US Income Tax Burden, County by County

By :: December 16th, 2013

Differences in income and other characteristics mean that federal income tax  burdens vary substantially across counties. While the median federal income tax burden across counties is about $3,400, approximately 10 percent of counties  have average tax burdens less than $2,100 and around 10 percent of counties have  average tax burdens over $6,700. Counties with high federal […]

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Eight in Ten U.S. Households Pay Social Security and Medicare Taxes

By :: September 12th, 2013

While relatively few low-income people pay federal income tax, a large and growing share owe Social Security and Medicare payroll taxes, according to new estimates by the Tax Policy Center. As a result, while about 43 percent of all households will pay no federal income tax this year, only 14 percent will pay neither income […]

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Taxing Millionaires: Obama’s Buffett Rule

By :: April 11th, 2013

From the start of his 2008 campaign, President Obama has called for raising taxes on the rich. He got much but not all that he wanted in the American Taxpayer Relief Act (ATRA) earlier this year. Now his FY2014 budget takes another couple of bites at that apple. The first repeats his proposal to cap […]

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“Common Sense” Aside, What Do We Really Know About Capital Income Taxes and Growth?

By :: March 15th, 2013

If you’re discussing tax policy with someone who asserts that his or her point is “just common sense,” this could indicate one of two things: Either no deep thought is required—as the person would have you believe. Or no deep thought has been applied. The “common sense” notion that capital income taxes hinder growth seems […]

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Can the Income Tax Fund the Government We Want?

By :: February 5th, 2013

Can the income tax fund the government we seem to want? Probably not. Will lawmakers create a revenue system that will? Not anytime soon. That was the consensus of four tax policy experts at an Urban Institute panel I moderated this afternoon. The panelists–historian Joe Thorndike, Urban Institute economist and tax reform veteran Gene Steuerle, […]

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Happy Birthday, Income Tax

By :: February 5th, 2013

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.  [U.S. Constitution, 16th Amendment] On February 3, 1913, Delaware became the 36th state to ratify the 16th amendment to the Constitution, which authorized the US Income Tax. […]

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