About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Gerald Prante, Increase in Child Tax Credit Sends Families with Many Children off the Tax Rolls 1 (2006)

handle is hein.taxfoundation/ffgjxz0001 and id is 1 raw text is: r:OuUNNDAT10N. October 10, 2006 Increase in Child Tax Credit Sends Families with Many Children off the Tax Rolls by Gerald Prante Fiscal Fact No. 69 Across the nation, nearly every income group in every state has had its taxes cut in recent years. With new data from the Internal Revenue Service (IRS) on the taxes paid for 2004, we can now see the full effects of the so-called Bush tax cuts enacted in 2001 and 2003. Because states have different demographic profiles, some states' taxpayers benefit more than others from the tax cuts. Since the Bush tax cuts went into effect, a growing number of tax filers have been paying no federal income taxes. Millions who paid into the federal till each year before 2001 now get every dollar back that the federal government withheld from their paychecks during the year, and then some. This trend is well documented but frequently ignored by critics of the tax cuts. Two changes in tax law have caused this explosion in the number of non-payers-tax returns that have zero or even negative federal income tax liability. They are the expansion of the child tax credit from $500 to $1,000 (complete in 2003) and the creation of the 10 percent taxable income bracket (complete in 2001). Impact of Children on Number of Non-Payers Table 1 illustrates how these two policy changes have affected the taxpaying public in each state. Even though the percentage of taxpayers who pay no income taxes has grown in every state, the tax savings vary widely from state to state. States with a high number of children per family, such as Utah, saw larger increases in the fraction of tax returns that had no liability. In states (and the District of Columbia) where there are fewer children per family, most taxpayers who owed taxes before 2001 still owe taxes each year. The Census Bureau ranks the states based on the percentage of each state's population that is under 18. The District of Columbia has the smallest percentage of children of any U.S. state (ranked 51 st), and also has the fewest number of people pushed off the tax

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most