How do phaseouts of tax provisions affect taxpayers? Q.How do phaseouts of tax provisions affect taxpayers? A.Many preferences in the tax code phase out for high-income taxpayers—their value falls as income rises. Phaseouts target tax benefits to low- and middle-income households while limiting revenue costs, but raise marginal tax rates for taxpayers in the phase-out range. Read more about How do phaseouts of tax provisions affect taxpayers?
How did the TCJA change the standard deduction and itemized deductions? Q.How did the TCJA change the standard deduction and itemized deductions? A.The Tax Cuts and Jobs Act nearly doubled the standard deduction and eliminated or restricted many itemized deductions in 2018 through 2025. It also eliminated the “Pease” limitation on itemized deductions for those years. Read more about How did the TCJA change the standard deduction and itemized deductions?
How should changes in tax progressivity be measured? Q.How should changes in tax progressivity be measured? A.A broad definition of tax progressivity, that tax burdens rise with household income, masks a host of ambiguities in measuring the effect of a tax change. In our distribution tables, TPC emphasizes the percentage change in after-tax income because it is the most reliable measure of the progressivity of such a change. Read more about How should changes in tax progressivity be measured?