Impact of the Great Recession and Beyond: Disparities in Wealth Building by Generation and Race (Occasional Paper)
This paper uses over two decades of Survey of Consumer Finances data and a pseudo-panel technique to measure the impact of the Great Recession on wealth relative to the counterfactual of what wealth would have been given wealth accumulation trajectories. Our regression-adjusted synthetic cohort-level models find that the Great Recession reduced the wealth of American families by 28.5 percent—nearly double the magnitude of previous pre-post mean descriptive estimates and double the magnitude of any previous recession since the 1980s. The housing market was only part of the story; all major wealth components fell as a result of the Great Recession.
Educational Attainment and Earnings Inequality among US-Born Men: A Lifetime Perspective (Research Report)
|Posted to Web: April 22, 2014||Publication Date: April 22, 2014|
This report tracks the lifetime earnings of men born in the U.S. between 1940 and 1974, focusing on how earnings differences by educational attainment, age, and year of birth have evolved. Both annual and lifetime earnings inequality increased dramatically for men born in the mid-1950s onward. That increase reflects both absolute earnings gains to highly educated workers (especially those with more than a four-year college degree) and absolute earnings losses to less educated workers. Earnings inequality also increases substantially among those with the same level of educational attainment, complicating standard assumptions about the lifetime value of a college degree.
A Comparison of State Minimum Wages (Article/Tax Facts)
|Posted to Web: April 08, 2014||Publication Date: April 08, 2014|
This Tax Fact examines minimum wages across states. The current federal minimum wage, which applies to almost all employees, is $7.25 per hour — unchanged since 2010. The District of Columbia and 21 states set minimum wages higher than the federal rate.
Raising Medicare Premiums for Higher-Income Beneficiaries: Assessing the Implications (Policy Briefs)
|Posted to Web: April 01, 2014||Publication Date: March 31, 2014|
As policymakers consider ways to slow the growth in Medicare spending as part of broader efforts to reduce the federal debt or offset the cost of other spending priorities, some have proposed to increase beneficiary contributions through higher Medicare premiums. Some proposals would increase Medicare premiums paid by all beneficiaries, while others would raise premiums only for beneficiaries with higher incomes. This issue brief explains provisions of current law that impose income-related premiums under Medicare Part B and Part D, describes recent proposals to modify these requirements, and analyzes the potential implications for the Medicare population.
Income and Assets of Medicare Beneficiaries, 2013 - 2030 (Policy Briefs)
|Posted to Web: February 28, 2014||Publication Date: January 15, 2014|
Many Medicare beneficiaries live on fixed incomes supplemented by the savings they accumulated during their working years. Their income and savings are tied to many life experiences, including their education, health status, marital status, number of work years, household income, access to employer retirement benefits, inheritance, and various economic factors. As a result, the income and assets of Medicare beneficiaries vary greatly. This brief describes the income and assets of Medicare beneficiaries now and in the future and provides context for understanding the extent to which current and future generations of beneficiaries can afford to absorb higher health care costs.
Redistribution Under the ACA is Modest in Scope (Policy Briefs/Timely Analysis of Health Policy Issues)
|Posted to Web: February 28, 2014||Publication Date: January 09, 2014|
Claims that the ACA involves "the largest income transfer in American history" are exaggerated. Low- and moderate-income people receive benefits equaling 0.9 percent of GDP, a fraction of spending on Medicare, Social Security, and tax preferences for employer-sponsored insurance. The affluent contribute just 0.2 percent of GPD, with taxes limited to 2.4 percent of tax-filers, who pay an average of 0.5 percent of income. Nearly three-quarters of ACA's funding comes, not from the wealthy, but from the health care industry, through reimbursement cuts or taxes and fees. However, these contributions are offset by new revenue from people gaining health insurance.
Child-Related Benefits in the Federal Income Tax (Series/Perspectives on Low-Income Working Families)
|Posted to Web: February 12, 2014||Publication Date: February 14, 2014|
The federal income tax system provides substantial benefits to families with children. In 2013, the Tax Policy Center estimates that five major child-related tax benefits – the earned income tax credit (EITC), the child tax credit, the child and dependent care tax credit, the dependent exemption, and head of household filing status – will reduce taxes and provide credits totaling $171 billion (roughly $3,400 per family) for families with children. Nearly all families benefit, but low- and middle-income families tend to benefit most. This paper highlights who benefits from each major provision and how much benefit is received.
A Demographic Snapshot of Disconnected Low-Income Men (Research Brief)
|Posted to Web: January 27, 2014||Publication Date: December 31, 2013|
In 2008-10, 16.5 million civilian men nationwide age 18-44 lived in families with incomes below 200 percent of the federal poverty level; 15 million of these men lacked college degrees. Low-income men are more likely to have never married than men the same age nationwide, and they are disproportionately African American or Hispanic. Using data from the American Community Survey, this brief presents estimates of the number of low-income men in the 50 states and the District of Columbia, focusing on metropolitan areas with at least 50,000 low-income men.
The War on Poverty Moves to the Tax Code (Article/Tax Facts)
|Posted to Web: January 08, 2014||Publication Date: January 08, 2014|
In 1975, the federal income tax code joined the "War on Poverty" with the enactment of the earned income tax credit (EITC). Today, tax credits form some of the largest and most effective anti-poverty programs in the US. In 2012, the Census Bureau estimated that tax credits cut poverty (under a broad measure that includes the effect of programs like Supplemental Nutrition Assistance Program benefits and the EITC) by 3 percentage points – more than SNAP (1.6 points) and TANF (0.2 points). The tax credits cut child poverty by a whopping 6.7 percentage points.
New Perspectives on Homeownership Tax Incentives (Research Report)
|Posted to Web: January 07, 2014||Publication Date: January 06, 2014|
This report presents three tax reforms designed to promote homeownership through a channel other than the deductibility of mortgage interest. These reforms include a first-time homebuyer tax credit, a refundable tax credit for property taxes paid, and an annual flat amount tax credit for homeowners—all paid for by limiting current tax expenditures for housing. Although far from perfect, these reforms would provide a more efficient and equitable allocation of housing subsidies. Our simulations show that relative to existing incentives, each policy would raise home prices and make the tax code more progressive.
|Posted to Web: January 06, 2014||Publication Date: January 06, 2014|