Informative Tables from Tax Policy Center
Tax Policy Center has two sets of interesting tables that have just come out in the past few days. They offer some great information for those of you who are eager to brush up on your knowledge of the tax code.
The first set of tables show the parameters that TPC uses in their current law and current policy baselines. In effect, the tables shows what happens to tax rates, the AMT, and a whole host of other aspects of the tax code that would change if provisions from the 2010 tax cut extension were allowed to expire as scheduled (or were extended, depending on how you want to look at it). It is a great way for comparing the current law and current policy tax code side-by-side in an in-depth manner. Here is just a segment of what is a very large and detailed table:
You can click on the table for the enlarged version on TPC's website.
The second set of tables contain distributional tables for a whole host of tax preferences. A few mostly benefit low-income people, such as the Earned Income Tax Credit and the child tax credit, but unsurprisingly, many of them disproportionately benefit high earners, like the state and local tax deduction and the charitable deduction. This just goes to reflect our point that many tax expenditures, especially itemized deductions, are poorly targeted and regressive.
Between the many expiring provisions that cause confusion and uncertainty and the long list of inefficient and ill-targeted tax expenditures, it becomes clear that our tax system needs reform. As lawmakers debate changes that could help set our nation on a sound fiscal path, comprehensive tax reform that fixes a broken tax code should be one of the top items on their list.