Federal Tax

Like individuals, businesses take advantage of tax expenditures such as exclusions, exemptions, deductions, and credits, when calculating federal tax liability. The composition of the tax expenditures taken by firms may vary depending on their size. Small firms may, for example, be less likely to take advantage of tax expenditures related to foreign profits if they
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On July 10, the Taxpayer Advocate Service (TAS) released a set of recommendations to expand and simplify the Earned Income Tax Credit (EITC). This refundable credit is praised by some for its role in decreasing poverty and encouraging work among certain groups. However, the number of improper payments associated with the EITC makes legislators hesitant
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Tomorrow, the House of Representatives will vote on H.R. 748, sponsored by Representative Joe Courtney (D-CT). This bill would repeal the excise tax on high-cost employer-sponsored health coverage, otherwise known as the “Cadillac tax,” for taxable years starting after 2019. While repealing is likely to pass the House, ideally, the tax should be implemented. It
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Earlier this year, Senator Roy Blunt (R-MO) and Senator Ben Cardin (D-MD) introduced the New Markets Tax Credit Extension Act of 2019, which would permanently extend the New Markets Tax Credit (NMTC) and increase NMTC allocations, among other changes. The NMTC was originally established by the Community Renewal Tax Relief Act of 2000. It was
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Last month, Democratic presidential candidate and former Texas congressman Beto O’Rourke reintroduced his “war tax” proposal as part of a broader initiative to address veterans’ issues. It mirrors the Veterans Health Care Trust Fund Act, which stalled in the House of Representatives when he introduced it in 2016 and 2017. Though there have been other
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The federal tax code allows individuals to reduce their tax liability through a variety of provisions, such as tax deductions, tax credits, tax exemptions, and tax exclusions. Deductions are generally available to all tax filers, but the extent to which a person benefits depends on income. The interaction of deductions with taxable income means that
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Politicians continue to tout the benefits of opportunity zones, but economists continue to be skeptical. The findings from a new study underscore concerns that the Opportunity Zones program, while it may be welcomed by those directly benefiting from the program’s tax breaks, may not broadly revitalize economically distressed communities. Economists Alan Sage, Mike Langen, and
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Key Findings The Patient Protection and Affordable Care Act (PPACA) imposed an excise tax on high-cost employer-sponsored health coverage. This “Cadillac” tax was established to help pay for the PPACA’s provisions and to reduce health-care costs by limiting the income tax exclusion for employer-sponsored insurance. The tax has been delayed on several occasions but is
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