Urban-Brookings Tax Policy Center

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...

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...

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 ...

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...

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...

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...

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...

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...

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.

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...

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...

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...

chart showing scheduled tariff rate increases going into effect on August 1 for a variety of consumer goods

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

Research to Inform 2025 Reconciliation: Taxes, Safety Net, and Beyond In 2025, Congress is considering legislation to extend the expiring provisions in the 2017 Tax Cuts and Jobs Act, as well as address other tax and policy areas, using the partisan reconciliation proce...

The legislation also includes cuts to various safety net programs, including SNAP and Medicaid. You can read more on those provisions in analyses by our @urbaninstitute.bsky.social colleagues www.urban.org/projects/res...

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/...

chart showing changes in federal spending on children in various categories for the 2019-34 time period

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...

Figure 1 shows Proposed Child Tax Credit 2024-2034 for the House One Big Beautiful Bill Act and Senate Finance Committee Draft.

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...

chart comparing how the House and Senate versions of the "One Big Beautiful Bill Act" would change the child tax credit

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...

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.

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...

Data map showing how much proposed federal benefit cuts could impact each state

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...

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.

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...

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...

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...

a chart showing the year by year revenue loss under House Republicans 2025 tax and spending plan

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.

Don’t Expect Much Growth From The One Big, Beautiful Bill Although the bill would raise growth, the effect would be modest.

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-...

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...