Tag: ‘Tax Policy Center’

The Scary New World of Tax Fraud

By :: May 14th, 2015

Back in the day—say 2011–tax fraud was pretty straightforward. Taxpayers deliberately understated income or overstated deductions to cheat the system for their own benefit. Not anymore. Now, a growing share of such fraud is about crooks using the identities of innocent taxpayers to steal money. If you have a home phone or an email account, these […]

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ACA Tax Filing Was Surprisingly Painless, But Not For All

By :: April 29th, 2015

It turns out that the first year of tax filing for people who have Affordable Care Act health insurance subsidies was a lot easier than the first year of enrolling in the online exchanges. In contrast to the ACA’s maiden open enrollment season, the initial process of settling up incorrect subsidies was a relative breeze. […]

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Could a Carbon Tax Finance Corporate Rate Cuts?

By :: April 23rd, 2015

How about using revenue from a carbon tax to help pay for corporate tax rate cuts? That’s the idea proposed yesterday by Rep. John Delaney (D-MD). His political calculation: Democrats would back the bill as a way to reduce carbon emissions and slow climate change. Republicans would support the plan to cut corporate tax rates […]

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Tax Cuts for Low- and Moderate Income Households May Be Much More Powerful Than Cuts for the Rich

By :: April 21st, 2015

It turns out that tax cuts for the job creators…don’t create very many jobs. By contrast, tax cuts for low- and moderate-income households can boost economic growth. Those are the results of an interesting new working paper by Owen Zidar for the National Bureau of Economic Research. Zidar, an assistant economics professor at the University […]

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Rubio Tries to Triangulate Tax Policy

By :: April 16th, 2015

Newly declared GOP presidential hopeful Senator Marco Rubio is trying something truly (Bill) Clintonesque—navigating between the demands of his party’s base and a more centrist, forward-looking political agenda. Nowhere is it more obvious than in tax policy. And nowhere is the road ahead more risky for his presidential ambitions. In March, Rubio and fellow senator […]

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What Will Happen To Voluntary Tax Compliance If a Budget-constrained IRS Is Not Fixed?

By :: April 9th, 2015

Is the IRS such a mess that the nation’s system of voluntary tax compliance is at risk? Will frustrated taxpayers rebel because they can’t get help with a revenue code they can’t understand? Will aggressive taxpayers who recognize that audit rates have plummeted to the lowest levels in years further push the tax-avoidance envelope?  And […]

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For Most Households, It’s About the Payroll Tax, Not the Income Tax

By :: April 2nd, 2015

While policymakers obsess about the income tax, they often lose sight of an important detail: For two-thirds of households, the levy that matters most is the payroll tax. According to a new report by the Joint Committee on Taxation, the 80 million tax filers making $40,000 or less will collectively pay no federal income tax and many […]

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Is a Consumption Tax Talk Making a Comeback?

By :: March 31st, 2015

Maybe it’s just because Congress is on spring break and tax wonks don’t have much to talk about, but suddenly the idea of a consumption tax is getting a new look. The tax plan proposed earlier this month by senators Mike Lee (R-UT) and Marco Rubio (R-FL) is one form of the levy. And tax […]

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So Far, Affordable Care Act Users Are Managing Tax Filing, Many Uninsured May Use New Enrollment Period

By :: February 24th, 2015

So far, most people with Affordable Care Act insurance subsidies seem to be filing their taxes without huge problems, despite the complexity of the process. However, about half of those who have filed returns with tax prep firm H&R Block and who owe a penalty for not having insurance, have expressed interest in purchasing exchange coverage, […]

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Better Ways to Link the Affordable Care Act with Tax Filing Season

By :: February 23rd, 2015

The Obama Administration, finally acknowledging the seasonal mismatch between the Affordable Care Act’s open enrollment season and the ACA’s tax-based penalties for failing to have insurance, decided on Friday to create a new special enrollment season for this year only.  The new window will allow those who are subject to the penalty for 2014 ($95 […]

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