Individual Taxes Archive
The Latest SALT Cap Fix Would Mostly Benefit High Income Households, Do Little For Middle-Income People
November 3, 2021
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TweetShareSharePin0 Shares The House Democrats’ latest plan to adjust the cap on the state and local tax (SALT) deduction would provide little or no benefit for low and middle-income households but generate a substantial tax windfall for those with much higher incomes, according to a new analysis by the Tax Policy Center. The latest plan
How The Democrats’ New Millionaire Surtax Would Work
October 28, 2021
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TweetShareSharePin0 Shares Democrats, scrambling to find a way to tax high-income households that Congress is willing to enact, appear to have settled on an individual income tax surtax. Their “millionaire’s surtax,” announced by President Biden this morning, would raise taxes on all forms of income, including wages, capital gains, and dividends. It would impose a
The Child Tax Credit Could Be A Lifeline For Puerto Rican Families—But Only If They File
October 27, 2021
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TweetShareSharePin0 Shares Among other changes to the child tax credit (CTC), the American Rescue Plan (ARP) made the CTC available to far more families in Puerto Rico. However, because so few parents on the island pay federal income tax, or even typically file a Form 1040, policymakers and community organizations will have to work hard
Gaming The SALT Cap May Be Congress’s Worst Tax Idea Of The Year
October 27, 2021
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TweetShareSharePin0 Shares Ever since Congress capped the state and local tax (SALT) deduction in 2017, a small group of Blue State Democrats has demanded the cap’s repeal. Indeed, they have made it their price for supporting President Biden’s Build Back Better social spending bill. Now, it appears they may get their wish. The result, though,
Wyden’s Billionaire Income Tax Is Ambitious But Problematic
October 25, 2021
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TweetShareSharePin0 Shares Senate Finance Committee Chairman Ron Wyden (D-OR) likes to say: “There are two tax codes in the United States: one for workers who pay taxes out of every paycheck and the other for high-fliers who use games and tricks to avoid their taxes.” He’s now proposing to add a third tax code, one for
South Dakota Turned Itself Into A Tax Haven. But Why?
October 14, 2021
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TweetShareSharePin0 Shares In recent decades, South Dakota has become one of the world’s great tax havens. By the end of last year, more than $367 billion in trust assets were managed in the state through at least 62 publicly-chartered trusts. The trust companies earn big fees. The trust owners hide their assets and avoid billions
Dear Senators Crapo And Grassley: Synthetic Tax Data Protect Taxpayer Privacy
October 12, 2021
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TweetShareSharePin0 Shares Senators Mike Crapo (R-ID) and Chuck Grassley (R-IA) recently asked for an investigation into the Internal Revenue Service’s research activities, including its use of contractors to conduct studies and its security protocols. The senators are right to be concerned about taxpayer privacy, especially after ProPublica’s recent articles about the tax situations of very
Immigrant Parents Are Less Aware of Child Tax Credit Than US-Born Parents and More Likely to Plan to Use It to Invest in Education, Fill Gaps in Child Care and Health Care
October 7, 2021
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TweetShareSharePin0 Shares Immigrant parents are less likely to have heard about the expanded child tax credit (CTC) than parents born in the United States, according to a survey conducted in early July. They’re more likely to see the credit as a way to invest in their children’s education and pay for child care and health
Crypto Tax Provision May Prompt Investors to Push Industry for More Compliance Help
October 7, 2021
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TweetShareSharePin0 Shares The congressional debate over new tax compliance measures for cryptocurrency investors has primarily focused on two issues—the potential to raise new revenue and what parts of the industry may be reclassified as “brokers” who must transmit data on customer gains and losses to the IRS. But the bipartisan infrastructure bill seeks to do
How To Make Retirement Saving Easier For Millions Of Americans
October 6, 2021
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TweetShareSharePin0 Shares Last month, a weekend of basement cleaning uncovered decades-old records of my first tax-advantaged individual retirement account (IRA) and three employer-sponsored retirement accounts I opened in my early twenties. My dad helped me open that first IRA with earnings from my high school job as a babysitter. He made saving easy for 16-year-old
