Federal Tax

This week, the Congressional Budget Office (CBO) released its extended baseline projections, an annual update of what federal deficits, debt, spending, and revenues would look like over the next 30 years if current laws remain unchanged. These latest projections take into account the effects of the coronavirus pandemic and resulting economic disruption on revenues and
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The Senate is poised to vote on a coronavirus aid relief package today, which would provide additional funding for individuals, businesses, and states combatting the pandemic. The “Delivering Immediate Relief to America’s Families, Schools, and Small Businesses Act” enters the negotiations as a Senate Republican response to multiple packages proposed by Democrats and Republicans in
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Supporters and critics of Democratic presidential nominee Joe Biden’s tax plan have made a variety of claims about the size of the tax proposals, ranging from “not big enough” to the “biggest tax increase in history.” Comparing his tax proposals—which include higher taxes on high-income earners and businesses paired with more generous provisions for households
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Among Democratic presidential nominee Joe Biden’s many tax proposals, one that has gotten less attention would modify how traditional retirement accounts are treated in the tax code. This proposal would shift some of the benefits of tax deferral in traditional retirement accounts toward lower- and middle-income earners with the goal of encouraging additional saving by
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Key Findings The Low-Income Housing Tax Credit (LIHTC) offers developers nonrefundable and transferable tax credits to subsidize the construction and rehabilitation of housing developments that have strict income limits for eligible tenants and their cost of housing. The LIHTC has subsidized over 3 million housing units since it was established in 1986, the largest source
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Housing affordability was a major issue even before the COVID-19 crisis and corresponding recession, but the current economic hardship has made it more salient. Immediate support for people struggling makes sense now, but lawmakers should also consider long-term solutions to the problem of high rents, namely by expanding the supply of housing. Improving the tax
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On Thursday, U.S. Senators Marco Rubio (R-FL), Bill Cassidy (R-LA), Steve Daines (R-MT), and Mitt Romney (R-UT) released the Coronavirus Assistance for American Families Act (CAAF). This bill would change the way the economic impact payments—commonly known as recovery rebates or stimulus payments—could work in the next round of pandemic-driven relief for households.  The bill’s
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On Monday, Senate Majority Leader Mitch McConnell (R-KY) announced the Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, backed by Senate Republicans as their opening bid for “Phase 4” economic relief ahead of negotiations with Senate and House Democrats. Phase 4 relief is the anticipated follow-up legislation to the $2 trillion Coronavirus Aid, Relief,
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Key Findings Allowing companies to fully and immediately deduct investments in structures is one of the most cost-efficient ways lawmakers can stimulate investment, create jobs, and boost GDP during a post-pandemic recovery. Changes to depreciation schedules in the two pieces of major tax legislation in the 1980s influenced investment in real estate and have since
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The COVID-19 pandemic has disrupted global supply chains, worsened geopolitical tensions with China, and produced a spike in unemployment. These trends have combined to make bringing jobs back from overseas a politically valuable idea. There are several tax-related bills in Congress intended to incentivize specific industries to come back to the United States. But before
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