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Temporary Policies Complicate the Child Tax Credit’s Future

Over the next ten years, the structure of the Child Tax Credit (CTC) is scheduled to change, complicating efforts to extend enhanced Child Tax Credit benefits or reform the Child Tax Credit for the long-term. Rather than take an all-or-nothing approach or kick the can down the road by relying on temporary expansions, lawmakers could consider […]

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The DASH Act Isn’t the Best Way to Solve the Housing Crisis

To tackle problems of homelessness and housing costs, Senator Ron Wyden (D-OR) has released a major tax proposal, the Decent Affordable Safe Housing (DASH) For All Act. Several of Wyden’s proposals are also components of the Biden administration’s infrastructure agenda, with a large focus on tax credits designed to either incentivize new housing or directly […]

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Reviewing Benefits of the State and Local Tax Deduction by County in 2018

Download PDF As Congress considers repealing or making more generous the $10,000 state and local tax deduction cap in the budget reconciliation process, it is helpful to review how the state and local tax (SALT) deduction is taken by taxpayers across U.S. counties. Using 2018 data from the Internal Revenue Service, we can examine how […]

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Evaluating Trade-Offs of Expanded Premium Tax Credits as Enrollment Period Ends

August 15th was the deadline to take advantage of the premium tax credits (PTC) originally provided in the Affordable Care Act (ACA) and recently expanded in the American Rescue Plan Act (ARPA). Future extensions may provide longer-lasting benefits, although the extensions may create trade-offs for consumer choice and program costs. The ACA provided a refundable […]

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Unanswered Questions about Upcoming Advance Child Tax Credit Payments

Later this month more than 39 million households are set to receive advance payments of the Child Tax Credit (CTC) that was expanded in the March 2021 American Rescue Plan. Many households are uncertain about how the advance payments will affect their refunds or taxes owed when they file next year, and some questions about […]

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Trade-offs of Expanding Individual Tax Credits While Repealing SALT Deduction

A key theme of our Options for Reforming America’s Tax Code 2.0 is that tax policy is a matter of trade-offs. For example, expanding the generosity of tax credits for lower-income individuals can help make the tax code more progressive, but it also reduces federal revenue. Pairing a credit expansion with a tax offset may […]

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Details and Analysis of President Biden’s American Jobs Plan

Table of Contents Launch Resource Center: President Biden’s Tax Proposals The Biden administration’s proposed American Jobs Plan (AJP) would increase federal spending by about $2.2 trillion over 10 years, including $1.7 trillion for infrastructure, partially funded with permanently higher corporate taxes of about $1.7 trillion over 10 years (conventionally estimated). Using the Tax Foundation General […]

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Biden Proposals Would Significantly Expand Benefits Administered Through the Tax Code

President Biden’s newly released budget and the Treasury Department’s “Green Book” of revenue proposals outlines a vision of more spending administered through the tax code. The proposals have revived the debate over the proper role of spending in the tax code, and relies on the Internal Revenue Service (IRS) to further expand beyond its revenue […]

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Closer Look at Option to Restructure EITC/CTC to Help Low-Income Households

Our new book Options for Reforming America’s Tax Code 2.0 models several tax proposals that would help low-income taxpayers with little impact on overall economic growth. Here we take a closer look at the most extensive of these proposals: restructuring the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) based on the Family […]

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Tax Relief for Families in Europe

Most countries provide tax relief to families with children—typically through targeted tax breaks that lower income taxes. While all European OECD countries provide tax relief for families, its extent varies substantially across countries. One way to measure targeted tax relief for families is to compare the tax burdens on labor of a family with one […]