-Economic effects of tax policy Archive

What is Dynamic Scoring? TPC’s Ben Page and John Buhl Discuss the Basics
November 1, 2021
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TweetShareSharePin0 Shares With Congress in the midst of an intense debate over a big new tax and spending bill, policymakers are battling over the costs and economic benefits of many proposals. One way to measure those is dynamic scoring—a tool that makes it possible to better understand how policy changes affect the overall economy, and

Why Progressivity in Tax Policy Is Not A Simple Matter
October 20, 2021
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TweetShareSharePin0 Shares Policymakers and even policy analysts often consider the progressivity of specific proposals independently from the broader systems in which they operate. Consequently, they often leave the public with a misleading impression of how those proposals affect various income groups. Here are four examples of how specific programs might appear to be regressive yet

Low Interest Rates Have Implications for Tax Policy
September 23, 2021
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TweetShareSharePin0 Shares As of this morning, yields on 10-year Treasury bonds stood at 1.33 percent. The yield on TIPS bonds–which are adjusted for inflation–was negative. These astonishingly low returns, occurring even in the presence of a growing economy and rising inflation fears, are not new. Interest rates on government debt have been falling in many

What’s Easier: Killing Aliens, Or Levying A Vehicle-Mileage Tax?
September 1, 2021
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TweetShareSharePin0 Shares My teenaged son and I just watched the science-fiction thriller “The Tomorrow War,” in which a future government drafts present-day civilians to travel forward in time and fight an alien invasion. It turns out (spoiler) that the extra-terrestrials had crashed into one of Earth’s glaciers centuries ago. Climate change melts the ice and

Searching for Supply-Side Effects of The Tax Cuts and Jobs Act
July 6, 2021
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TweetShareSharePin0 Shares The 2017 Tax Cut and Jobs Act (TCJA) was built on the idea that lower business and corporate tax rates, new domestic investment incentives, and guardrails against international profit shifting would increase investment, make workers more productive, and ultimately raise output and wages. Did it work? In a new paper with my Tax
Treasury Will Allow States to Take ARP Funds and Cut Taxes, With Some Guardrails
May 13, 2021
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TweetShareSharePin0 Shares On Monday, the U.S. Treasury Department released much-anticipated guidance for the American Recovery Plan’s (ARP) $350 billion in direct state and local aid, including details on how it will implement the law’s restriction on using ARP funds for state tax cuts. Treasury’s rules give states plenty of flexibility. But there are limits, and

Monthly or Quarterly Child Tax Credit Payments? Both Have Value
April 28, 2021
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TweetShareSharePin0 Shares IRS Commissioner Charles Rettig told the Senate Finance Committee on April 13 that the agency could begin delivering monthly 2021 Child Tax Credit (CTC) payments starting in July. Rettig was responding to provisions of the American Rescue Plan (ARP) that increased the CTC and directed the IRS to deliver half of a family’s

Tax Obligation Expenses Stay A Substantial Share of The Economic Climate
April 20, 2021
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TweetShareSharePin0 Shares Regardless of years of prevalent conversation amongst legislators regarding the demand to expand the government earnings tax obligation base, tax obligation expenses have actually stayed extremely secure as a share of the economic situation as well as will likely remain to do so, according to a new study by the Tax Policy Center.

Delivering Tax Benefits to People Who Are Experiencing Homelessness
April 15, 2021
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TweetShareSharePin0 Shares By approving a third round of economic impact payments (EIPs) and expanding refundability of the Child Tax Credit, Congress has made refundable tax credits a more important pillar of income support than ever. But using tax credits as a way to provide income security to low-income households creates a significant challenge: How can
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