This Tax Fact explores the child tax credits refundability thresholds since its inception. Currently, the CTC is a $1,000-per-child credit that is partially refundable for households earning more than $3,000. This Tax Fact explores the distribution of credits when the refundability threshold...
Errors in the formulas for computing payroll tax for the self-employed result in their paying less payroll taxes than workers with the same earnings. All self-employed workers benefit from these errors, but those with high earnings benefit disproportionately. A provision in Ways and Means...
This document reviews several notable tax proposals in President Obamas fiscal year 2015 Budget. These include expanding the earned income tax credit (EITC) for workers without qualifying children, expanding the child and dependent care tax credit for families with young children, conforming...
Social Security benefits are taxed under a complex regime that raises marginal effective tax rates by up to 85 percent, which could discourage the labor supply of older workers and affect the decision to claim benefits. Using a nonparametric graphical methodology, this paper investigates whether...
Under current law, a large share of tax benefits for retirement saving accrues to high-income employees. We simulate the short- and long-term effect of three policy options for flattening tax incentives and increasing retirement savings for low- and middle-income workers. Our results show that...
Under current law, taxpayers may deduct interest paid on up to $1 million of acquisition debt used to buy, build, or improve a primary or secondary residence. Taxpayers can also deduct interest paid on up to $100,000 in home equity loans or other loans secured by their homes. This report...
The share of households with student loans rose from 9 percent in 1989 to 19 percent by 2010, while inflation-adjusted median student debt rose by more than 50 percent. Rising debt burdens can affect numerous outcomes. For those in school, loans may affect completion rates, choice of major, and...
Including employer-sponsored health insurance (ESI) in taxable compensation would increase income and payroll tax receipts, but would also increase Old Age, Survivors, and Disability Insurance (OASDI) benefits by adding ESI to the OASDI earnings base. The increased present value of OASDI...
Tax expenditures will cost more than $1.4 trillion in fiscal year 2014. Those that support health and housing policies account for more than 40 percent of this number, or about $640 billion. These figures and their accompanying table are calculations derived from the tax expenditure estimates in...
This report tracks the lifetime earnings of men born in the U.S. between 1940 and 1974, focusing on how earnings differences by educational attainment, age, and year of birth have evolved. Both annual and lifetime earnings inequality increased dramatically for men born in the mid-1950s onward....
Implications for Changing the Child Tax Credit Refundability Threshold
This Tax Fact explores the child tax credits refundability thresholds since its inception. Currently, the CTC is a $1,000-per-child credit that is partially refundable for households earning more than $3,000. This Tax Fact explores the distribution of credits when the refundability threshold...
Costly Error in Payroll Tax Computation for the Self-Employed
Errors in the formulas for computing payroll tax for the self-employed result in their paying less payroll taxes than workers with the same earnings. All self-employed workers benefit from these errors, but those with high earnings benefit disproportionately. A provision in Ways and Means...
Analysis of Specific Tax Provisions in President Obama's FY2015 Budget
This document reviews several notable tax proposals in President Obamas fiscal year 2015 Budget. These include expanding the earned income tax credit (EITC) for workers without qualifying children, expanding the child and dependent care tax credit for families with young children, conforming...
The Effects of the Taxation of Social Security Benefits on Older Workers' Income and Claiming Decisions
Social Security benefits are taxed under a complex regime that raises marginal effective tax rates by up to 85 percent, which could discourage the labor supply of older workers and affect the decision to claim benefits. Using a nonparametric graphical methodology, this paper investigates whether...
Flattening Tax Incentives for Retirement Saving
Under current law, a large share of tax benefits for retirement saving accrues to high-income employees. We simulate the short- and long-term effect of three policy options for flattening tax incentives and increasing retirement savings for low- and middle-income workers. Our results show that...
Updated Options to Reform the Deduction for Home Mortgage Interest
Under current law, taxpayers may deduct interest paid on up to $1 million of acquisition debt used to buy, build, or improve a primary or secondary residence. Taxpayers can also deduct interest paid on up to $100,000 in home equity loans or other loans secured by their homes. This report...
Student Loans Rising
The share of households with student loans rose from 9 percent in 1989 to 19 percent by 2010, while inflation-adjusted median student debt rose by more than 50 percent. Rising debt burdens can affect numerous outcomes. For those in school, loans may affect completion rates, choice of major, and...
Adding Employer Contributions to Health Insurance to Social Security's Earnings and Tax Base
Including employer-sponsored health insurance (ESI) in taxable compensation would increase income and payroll tax receipts, but would also increase Old Age, Survivors, and Disability Insurance (OASDI) benefits by adding ESI to the OASDI earnings base. The increased present value of OASDI...
Tax Subsidies for Health and Housing Top $600 Billion
Tax expenditures will cost more than $1.4 trillion in fiscal year 2014. Those that support health and housing policies account for more than 40 percent of this number, or about $640 billion. These figures and their accompanying table are calculations derived from the tax expenditure estimates in...
Educational Attainment and Earnings Inequality among US-Born Men
This report tracks the lifetime earnings of men born in the U.S. between 1940 and 1974, focusing on how earnings differences by educational attainment, age, and year of birth have evolved. Both annual and lifetime earnings inequality increased dramatically for men born in the mid-1950s onward....