The new budget reconciliation law makes the income tax deduction for pass-through businesses permanent. Who actually benefits from the tax break? We explore the data. taxpolicycenter.org/fiscal-facts...

Who Benefits From The Pass-Through Business Tax Deduction?

Business income is generally taxed in one of two ways. Corporate profits can be taxed at the entity level and then again when earnings are distributed to shareholders. In contrast, pass-throughs busin...

taxpolicycenter.org

Tax filing is simples when taking the standard deduction instead of itemizing. Supporters of the 2017 tax cuts lauded how it reduced the number of itemizers from 30% to 10%. The OBBBA moves in the other direction; an additional 5M returns will itemize this year. taxpolicycenter.org/model-estima...

T25-0243 – Impact of the 2025 Reconciliation Act on the Number of Itemizers, 2025-35 Calendar Years

The number of tax returns with itemized deductions from 2025–2035 under three policy scenarios: current law after passage of the 2025 Reconciliation Act, referred to as the One Big Beautiful Bill Act ...

taxpolicycenter.org

Sen. Cynthia Lummis (R-WY) has reintroduced crypto tax legislation that would make mining and staking rewards tax-free until the tokens are sold. taxpolicycenter.org/taxvox/probl...

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...

taxpolicycenter.org

The OBBBA will require Treasury to issue about two dozen new tax regulations to clarify implementation of the law. Doing that while cutting the IRS's budget presents a serious challenge. taxpolicycenter.org/taxvox/cutti...

Cutting the IRS Enforcement Budget Is A Disservice To Taxpayers

When enforcement funding is cut, taxpayers potentially lose an important service provided by the IRS: the chance to gain clarity and, in some cases, certainty about what the tax code means for them be...

taxpolicycenter.org

The Social Security Administration recently put out an announcement that the OBBBA "eliminates taxes" on Social Security benefits for 90% recipients. Is that true? taxpolicycenter.org/taxvox/corre...

Correcting the Social Security Administration About The Big Budget Bill

The misleading communication from SSA may add to the confusion many older adults already feel about the complex retirement insurance program.

taxpolicycenter.org

OBBBA makes permanent the tax deduction for pass-through businesses. Pass-through earnings are taxed on the individual tax returns of the business owners. Learn more about who benefits from this tax break: taxpolicycenter.org/fiscal-facts...

Who Benefits From The Pass-Through Business Tax Deduction?

Business income is generally taxed in one of two ways. Corporate profits can be taxed at the entity level and then again when earnings are distributed to shareholders. In contrast, pass-throughs busin...

taxpolicycenter.org

Starting August 1, tariffs will increase significantly on a number of consumer goods taxpolicycenter.org/taxvox/too-m...

OBBBA is set to pass the House soon and head to the president's desk. Here is how the tax provisions in the final version will impact households taxpolicycenter.org/tax-model-an...

Court-ordered fines and fees can be difficult to afford for some households. Some states are starting to take affordability into account, but a recent survey finds few people have their financial situation taken into account. taxpolicycenter.org/fact-sheets/...

Proposed cuts to safety net programs offered by congressional Republicans could further reduce the small portion of the federal budget that goes to supporting children. taxpolicycenter.org/briefs/propo...

As part of the budget reconciliation, both the House and Senate have proposed plans that would increase the maximum #child #tax credit and help offset program cuts that would affect low-income #families. Learn more in a @taxpolicycenter.bsky.social TaxVox post. urbn.is/3TGiFSH

The Senate Finance Committee's version of OBBBA differs from the House plan. TPC has model results on the Senate version and compares the two. taxpolicycenter.org/taxvox/tpc-f...

The House and Senate versions of the OBBBA both call for expanding the child tax credit. But neither would assist the 17 million children in families that don't qualify for the full benefit. See how the proposals compare: taxpolicycenter.org/taxvox/house...

More evidence pushing back on the idea that a more generous child tax credit for low-income families would discourage work: taxpolicycenter.org/taxvox/ctc-r...

CTC Reform Could Help Millions Of Low-Income Children With Minimal Effect On Employment

TPC estimates of a substantial labor market exodus from a child tax credit (CTC) are overstated. There are ways to expand the CTC that would help low-income families and increase parents’ employment.

taxpolicycenter.org

If Congress cuts its support for social safety net programs and states are left to pick up the slack, the result could be reduced benefits and higher taxes. taxpolicycenter.org/features/how...

The Earned Income Tax Credit is designed to reduce poverty and encourage work. But a provision in the OBBBA might deter eligible people from claiming the credit while making administration more costly. taxpolicycenter.org/taxvox/one-b...

One Big Beautiful Bill Act’s EITC Precertification Requirement Could Delay Refunds

With precertification, many eligible taxpayers would have to wait longer for their EITC, causing financial hardships in the meantime--if they get it all.

taxpolicycenter.org

Because of budget constraints, the District of Columbia is considering eliminating its child tax credit. TPC's Elaine Maag submitted written testimony to city policymakers explaining why the CTC provides a good return on investment. taxpolicycenter.org/testimonys/d...

The District of Columbia Child Tax Credit Would Provide Important Support for Families in the District with Low Incomes

The District faces ongoing budget challenges due to the expiration of temporary pandemic-related resources, post-pandemic shifts in the local economy, and uncertainty in the federal job market. This t...

taxpolicycenter.org

The economic growth from the fiscal plan passed by House Republicans would pay for only a small portion of the lost revenue. taxpolicycenter.org/taxvox/house...

If you sell crypto assets or use cryptocurrencies to make purchases, you need to report any resulting gains and losses on your tax return taxpolicycenter.org/fiscal-facts...

The OBBBA would raise the cap on state and local tax deductions from $10K to $40K, with an income phasedown starting at $500,000. Those making between $450K and $1.1 million would see the biggest benefits.

Congressional Republicans have argued that the "One Big Beautiful Bill Act" will lead to a surge in economic growth. There are reasons to be skeptical. taxpolicycenter.org/taxvox/dont-...

Don’t Expect Much Growth From The One Big, Beautiful Bill

Although the bill would raise growth, the effect would be modest.

taxpolicycenter.org

Trying to figure out what congressional Republicans are planning to do with taxes? Our landing page on the 2025 tax debate has lots of resources on the cost, who would benefit, and more: taxpolicycenter.org/features/202...