Tax Policy Center’s Tweets

Is a slimmed down version of Build Back Better still in play? Sen. Manchin just announced an outline of a deal with Sen. Schumer that revives notable tax changes to raise revenue for certain spending priorities. A 🧵 on what's proposed...

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TPC's Thornton Matheson spoke to

@rrgarver

about what could happen if other countries adopt pieces of the OECD's proposed tax plan for multinational corporations and the US doesn't. bit.ly/3PYkGpy

The stalled Senate negotiations on a tax and spending plan turned the corner yesterday as Sens. Manchin and Schumer and the Biden admin reached a deal. Howard Gleckman reviews the tax measures still in play.

What You Need To Know About The Manchin-Schumer Climate and Tax

What You Need To Know About The Manchin-Schumer Compromise After more than a year of often-fraught negotiations, Senator Joe Manchin (D-WV) says he has agreed...

Machine learning could help the IRS better leverage its data on file to improve tax enforcement. But it implementation won't be easy. Using historical data, for instance, could lead to results too heavily influenced by past audits.

Can Machine Learning Improve Tax Enforcement Without Human Teachers?

When it comes to tax enforcement, I used to believe the Internal Revenue Service could never have too much information. But the agency already collects...

Most non-profits don't actually have, um, profits. Those that do, often hospitals and universities, save about $21 billion in taxes annually. Nathan Born and Adam Looney consider if Congress should revisit the tax treatment of income earned by nonprofits.

How Much Do Tax-Exempt Organizations Benefit from Tax Exemption on

A relatively small number of non-profit organizations where revenues exceed expenses save as much as $21 billion in taxes annually, new research by Nathan Born...

Tax Policy Center Retweeted

Howard Gleckman

@howard_gleckman

Could the #IRS successfully fill out 1040s for #tax filers? To find out, join me and the Minneapolis Fed's Katherine Lim today at Noon on the

's webcast The Prescription:

The Prescription: Fiscal Policy for Today's Economy with Katherine Lim

Our guest this week is Katherine Lim, an economist with the Federal Reserve Bank of Minneapolis. Policymakers have long debated whether the IRS should fill...

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Last year, the child tax credit was made available as an advance monthly payment, rather than just as a lump sum households could receive when filing their taxes. New survey data found that lower-income families prefer the monthly payment option. tpc.io/3PG6AJL

How many tax returns could the IRS prefill if Congress gave it the go-ahead? At 12pm EDT we'll talk to a researcher who helped estimate the number of returns the agency could potentially handle. There is still time to register.

The Prescription: Fiscal Policy for Today's Economy with Katherine Lim

Our guest this week is Katherine Lim, an economist with the Federal Reserve Bank of Minneapolis. Policymakers have long debated whether the IRS should fill...

Lastly, Manchin's statement mentioned the importance of tax enforcement to reduce the deficit and promote tax fairness. Biden has called for boosting the IRS budget. Janet Holtzblatt has outlined how the IRS budget declined over the last decade.

The Effect of Tax Enforcement on Revenues

Janet Holtzblatt, senior fellow in the Tax Policy Center, testified before the Select Revenue Measures and Oversight subcommittees of House Ways and Means at a hearing on the tax gap and improving...

Manchin signaled his opposition to the SALT deduction in outlining what he'd support in a reconciliation package. The 2017 TCJA capped the deduction. The House in late 2021 passed legislation to raise the cap, which would benefit higher income earners. tpc.io/3qNRg2e

Manchin also called for closing the tax break for carried interest, which is used by partners at investment firms. Lawmakers have sought to amend carried interest rules in prior years. Our Briefing Book explains how this provision works.

What is carried interest, and how is it taxed?

Carried interest is a contractual right that entitles the general partner of a private investment fund (often a private equity fund) to share in the...

A book income minimum tax could also be hard to administer. Congress enacted one in the early 1980s but repealed it soon after. MIT professor Michelle Hanlon joined Howard Gleckman on our webcast The Prescription to explain the challenges.

The Prescription: Fiscal Policy for Today's Economy with Michelle

The Urban-Brookings Tax Policy Center is holding a series of online conversations on tax and fiscal policy in today’s economy. The discussions take place every...

Manchin signaled support for a 15% domestic minimum tax for large corporations based on financial accounting "book" income. Thornton Matheson previously noted that the min tax could deter investment more than raising the regular corporate rate to 25%. tpc.io/3G69lPz

In 2021, families had the option to get the child tax credit in advanced monthly payments, rather than at the end of the year with their tax refund. A new Urban survey finds that lower-income households in particular prefer the monthly payment option.

Many Adults with Lower Income Prefer Monthly Child Tax Credit Payments

Families typically receive the child tax credit (CTC) as part of an annual refund after filing their tax returns. The American Rescue Plan Act changed that temporarily. From July to December 2021,...

ICYMI, video from our 7/25 "State of the States" event is now online. Hear from leading experts on the fiscal and economic outlook for states and key challenges for policymakers in the years ahead.

State of the States: How States Are Navigating Volatile Times

The Urban Institute’s State and Local Finance Initiative invites you to join a virtual discussion on what lies ahead for state budgets in fiscal year...

Automatic Tax Filing: Simulating a Pre-Populated Form 1040

Could the IRS pre-fill your tax return for you? Minneapolis Fed economist Katherine Lim co-authored an NBER report on that question and will join us tomorrow at noon to explore the issue. Sign up here: tpc.io/3OvIEHs Read the NBER report:

nber.org

To help offset the cost of the TCJA, some tax provisions were indexed to a different inflation measure, chained CPI. But recent high inflation has made it more difficult to predict if the use of chained CPI will save as much revenue as expected. tpc.io/3urbLFJ

Build Back Better has stalled in the Senate. That leaves a lot of questions about the US adopting the new OECD corporate tax rules, increasing the IRS budget, and handling the impending expiration of certain TCJA tax changes.

How Should the US Tax Petroleum Profits?

Ballooning oil company profits have produced a volley of “windfall profit tax” proposals. How well would their different provisions meet the near-term US policy goals...

Should Congress look to raise taxes on the "windfall profits" of oil companies? Doing so without impacting investment decisions and consumer prices can be tricky. Thornton Matheson analyzed different plans to see how they compare.

How Should the US Tax Petroleum Profits?

Ballooning oil company profits have produced a volley of “windfall profit tax” proposals. How well would their different provisions meet the near-term US policy goals...

The OECD's tax plan for multinational corporations has been touted as a way to discourage global tax avoidance. But the EU and Congress are struggling to approve the plan. EY's Barbara Angus, former chief tax counsel for House W&M, explains why.

The Prescription: Fiscal Policy for Today’s Economy with Barbara Angus

Our guest this week is Barbara Angus, former chief tax counsel for the House Ways and Means Committee. Now a global tax policy leader at...

Biden's plans to tax the wealthy stalled in the Senate. TPC's Steve Rosenthal and Rob McClelland have an alternative idea that would be easier to administer, still raise substantial revenue, and discourage use of the "buy, borrow, die" tax avoidance.

Taxing Capital Gains at Death at A Higher Rate Than During Life

President Joe Biden and Senate Finance Committee Chair Ron Wyden (D-OR) have proposed different ways to tax unrealized capital gains every year. Their shared goal...

Nationally, about 10% of state motor fuel tax goes to mass transit. However, Illinois, New York, Pennsylvania, Connecticut, Maryland, and DC all allocate more than 25% of revenues to mass transit projects. tpc.io/3RW6gYO

Don't forget to sign up tomorrow for our free webcast featuring an interview with Minneapolis Fed economist Katherline Lim. She'll talk about research she co-authored estimating that the IRS could potentially pre-fill nearly half of individual tax returns.

The Prescription: Fiscal Policy for Today's Economy with Katherine Lim

Our guest this week is Katherine Lim, an economist with the Federal Reserve Bank of Minneapolis. Policymakers have long debated whether the IRS should fill...

With the tax proposals from Build Back Better all on hold, what's next for tax policy? Howard Gleckman looks at the issues lawmakers need to tackle.

Joe Manchin Pulled The Plug On Tax Increases. What Happens Next?

Joe Manchin Pulled The Plug On Tax Increases. What Happens Next? Conservative Democrat Joe Manchin (D-WV) may have effectively sealed the fate of President Biden’s...

Could the IRS fill out your tax return for you? We'll hear from Minneapolis Fed economist Katie Lim -- who co-authored a report estimating how many returns the IRS could do -- at our next Prescription webcast this Thursday.

The Prescription: Fiscal Policy for Today's Economy with Katherine Lim

Our guest this week is Katherine Lim, an economist with the Federal Reserve Bank of Minneapolis. Policymakers have long debated whether the IRS should fill...

State and local govts in 2019 collected about $16B in fines and fees. Some states allow those funds to go to law enforcement and judicial budgets, creating a conflict of interest that disproportionately impacts lower-income communities of color. tpc.io/33h2xk6

The drop in cryptocurrency prices has prompted policymaker interest in consumer protections and other possible regulations. But in the Senate, lawmakers are also looking at changing how crypto assets are taxed.

A Problematic Crypto Tax Break Introduced in the Senate

Sens. Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) today unveiled cryptocurrency legislation that seeks to provide regulatory clarity on a range of issues, including taxes...

A major weak spot in the hiring rebound has been state and local government.

@ShelbyKerns

says that there are several factors, but a big driver is the challenge of hiring and offering competitive compensation in the current environment with inflation so high.

Now

examining trends on state spending. Kerns notes that general fund spending for fiscal year 2022 is expected to be 13.6% higher than 2021 levels, the largest YOY increase in 40 years. nasbo.org/reports-data/f

now starting with her latest overview of state budgets. She outlined the risks for 2023 in a recent blog post.

States Forecast Weaker Revenue Growth Ahead of Growing Uncertainties

Just as state governors and legislators are figuring out how to spend their unexpected budget surpluses, global events could wipe out much of those gains...

Kicking off the "State of the States" fiscal outlook for 2023.

@Markzandi

"The economy is struggling, growth is slowing ... But I don't think we're in a recession." He added that risk of a recession has increased. #LiveatUrban

In 2019, 10% of total state motor fuel tax revenue was allocated to mass transit. Only DC (95%) and MD (55%) allocated over half of this revenue source to mass transit, while others mostly allocated it to state-administered highways. tpc.io/3RW6gYO

State of the States: How States Are Navigating Volatile Times

Don't forget to join us at 12pm EDT for our virtual "State of the States" event, examining the potentially volatile fiscal outlook for 2023. Hear from

Jul 24

Pres. Biden took office with an ambitious tax plan that's struggled to move in the Senate. Kim Clausing, who until recently headed Treasury's tax analysis office, talked about the challenges of getting various stakeholders on board with a large tax plan.

The Prescription: Fiscal Policy for Today's Economy with Kimberly

Our guest this week on The Prescription is Kimberly Clausing, who just finished a stint as deputy assistant secretary for tax analysis in the US...

Jul 24

Senate negotiators have been unable to reach an agreement on the Build Back Better tax provisions proposed by President Biden. That leaves many open questions on the future of tax policy without an immediate answer.

Joe Manchin Pulled The Plug On Tax Increases. What Happens Next?

Joe Manchin Pulled The Plug On Tax Increases. What Happens Next? Conservative Democrat Joe Manchin (D-WV) may have effectively sealed the fate of President Biden’s...

Jul 23

In recent testimony to Congress, TPC's Bill Gale outlined how taxes can impact economic inequality and tax reform options that could make economic growth more inclusionary.

Tackling the Tax Code: Evaluating Fairness, Efficiency, and Potential

On June 22, 2022, William Gale testified before the House Select Committee on Economic Disparity and Fairness in Growth in a hearing entitled, "Tackling the Tax Code: Evaluating Fairness, Efficiency,...

Jul 23

There's been growing interest in having the IRS fill out tax returns for individuals to ease the headache of filing. Join us 7/28 to hear from economist Katherine Lim, who co-authored a study estimating how many returns the IRS could pre-populate.

The Prescription: Fiscal Policy for Today's Economy with Katherine Lim

Our guest this week is Katherine Lim, an economist with the Federal Reserve Bank of Minneapolis. Policymakers have long debated whether the IRS should fill...