Tax Policy
NCTC's position on tax policy is simple: The tax system should make work pay while ensuring that wealthy families contribute their fair share.
Take a Balanced Approach to Deficit Reduction
Washington policy discussions are at a critical stage, as national leaders search for ways to reduce the federal deficit by at least $1.2 trillion over the next decade. This would add to $900 billion of discretionary spending cuts already enacted for Fiscal Years 2012-21. Many of these cuts already threaten to erode education, health care, human services and supports for working families’ basic economic security.
Strengthening EITC Compliance
The Earned Income Tax Credit (EITC) is widely acclaimed as one of the most successful policy tools for lifting low-income, working families from poverty, rewarding their work and making their taxes better reflect their ability to pay. While the credit is appropriately administered by the Internal Revenue Service (IRS) at significantly less cost than that of many other programs, its integrity – like that of other tax programs – always can be strengthened.
Policy Brief - A Single Higher Education Tax Credit: Opportunities for Advancement through the Tax Code
As college costs continue to climb and numbers of Americans with at least a bachelor's degree remain low, incentives for increasing higher education attainment must be re-crafted to meet these challenges and make college affordable for all students. Though a slate of incentives currently exists in the tax code, the low rates of postsecondary degree attainment among low- to moderate-income individuals suggests that reform is necessary. This brief lays the groundwork for restructuring the tax code's often overlapping credits into a single higher education tax credit with the intent of ensuring those who need the most support receive the most benefit.
National Impact of Tax Credit Expansion
A one-page summary of the impact of the Recovery Act credits on low- and moderate-income families. It includes an overview of the number of families impacted, the work incentive provided by these credits, and the hit families will take if these credits are not expanded
Fiscal Commission Comments
NCTC submitted comments to the President's Bipartisan Commission on Fiscal Responsibility and Reform. The Commission is charged with identifying policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run. Our comments provide an overview of what NCTC feels are progressive and fiscally responsible changes to our tax code.
Policy Brief - Refundable Tax Credits: A Permanent Solution for Working Families
The Recovery Act achieved many of the reforms we supported long before the economic downturn, including the expansion of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), as well as the creation of new refundable tax credits. These vital credits, and the progressive nature of our tax system overall, are now at risk. This policy brief looks at the impact the ARRA / Recovery Act tax credit expansions had on low- and moderate-income taxpayers and the need to permanently expand these credits.
Testiomony Before the Senate Finance Committee
On July 14, David Marzahl, the Center for Economic Progress president, testified during a hearing of the United States Senate Committee on Finance. David urged the committee to consider a permanent expansion of the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) included in the 2009 Recovery Act.
American Recovery and Reinvestment Act
NCTC strongly supported the passage of the American Recovery and Reinvestment Act (ARRA). Our goal moving forward is to ensure the new, temporary benefits for low-income workers are made permanent.
Interactive EITC Data and Maps
Use Brookings interactive tool to find EITC data and build maps for your zip code, city, state and legislative districts
State EITC Online Resource Center
Need to find information on your state's EITC program? Visit the State EITC Online Resource Center to get the status of EITC tax credits in your state. Provided by the Hatcher Group.
State EITC Policy Basics
A brief background report on State Earned Income Tax Credits. Provided by the Center on Budget and Policy Priorities.
IRS - Legislative Affairs Update 2010-13
IRS' legislative update after the passage of H.R. 4853, Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Joint Committee Staff’s Technical Explanation of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
An explanation of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 released by the IRS.
Tax Refunds Will Not Count Against Public Benefits
New legislation approved by Congress in December 2010 will spare low-income taxpayers from having much needed refunds count against other federal public benefits programs.
Noble Testimony on Expansion of Illinois State EITC - November 2011
Written comments of testimony delivered to the Illinois House Revenue Committee on November 16, 2011.
The EITC: Good for Our Families, Community & Economy
This paper explores the many benefits - both direct and indirect - of the Earned Income Tax Credit (EITC). Released on January 26, 2012 in conjunction with the IRS' national EITC Awareness Day.
