Balanced budget requirements (BBRs) are constitutional or statutory rules that generally prohibit states from spending more than they collect in revenue in a fiscal year. However, these state rules ...

As before, the amounts are indexed annually for inflation. The TCJA changed the measure used for inflation indexing from the consumer price index for all urban consumers (CPI-U) to the chained CPI-U—a ...

The largest and fourth largest tax expenditures on the JCT list are the benefits for tax-qualified retirement saving accounts. The tax on contributions, as well as the income earned within the ...

The American Rescue Plan increased the child tax credit (CTC) for 2021. Tax filers could claim a CTC of up to $3,600 per child under age 6 and up to $3,000 per child ages 6 to 17. There was no cap on ...

TCJA changed the structure of several major itemized deductions. Under prior law, itemizers could claim deductions for all state and local property taxes and the greater of their state and local ...

The corporate income tax is the third-largest source of federal revenue, although substantially smaller than the individual income tax and payroll taxes. It raised $424.7 billion in fiscal year 2022, ...

Every year, the Office of Management and Budget (OMB) and the congressional Joint Committee on Taxation (JCT) publish lists of tax expenditures. These lists, sometimes called the Tax Expenditure ...

A capital gain occurs if a capital asset is sold or exchanged at a price higher than its “basis,” the original purchase cost plus the cost of improvements less depreciation. When a person inherits an ...

Per the IRS’ Taxpayer Advocate Service, over 2.5 million federal tax returns were filed by ITIN filers in 2019, with a total reported tax liability of nearly $6 billion. Additional estimates suggest ...

General sales taxes are taxes on goods and services purchased by consumers, and the tax is a calculated as a percentage of the listed retail cost and added to the final purchase price paid by the ...

After the TCJA’s changes, the SALT deduction is now claimed almost exclusively by high-income households. In 2020, only 3 percent of tax filers with adjusted gross income (AGI) between $20,000 and $50 ...

Corporate Tax Revenues The United States raises less revenue from all corporate income taxes as a share of GDP than all other countries in the G7 and almost all other countries in the OECD (figure 2).