The House Committee on Ways and Means amended the Student and Family Tax Simplification Act last Thursday and has issued a comprehensive report on the bill. The bill, or H.R. 3393, was developed by Representatives Diane...
- Tax Freedom Day: A Description of Its Calculation and Ans...
Tax Freedom Day: A Description of Its Calculation and Answers to Some Methodological Questions
Working Paper No. 3
Tax Freedom Day is calculated by taking taxes paid in the current year divided by the nation's income for that year, which is derived from BEA statistics, and then projected by Tax Foundation economists using economic and budget projections from various sources, most notably the Congressional Budget Office (CBO). This paper contains an overview of the methodology that goes into calculating the nation's Tax Freedom Day.
This paper also addresses some methodological concerns, including those that have been made in the past, and some still to this day, by the Center on Budget and Policy Priorities (CBPP). Each year, the CBPP releases a criticism of the Tax Foundation's annual calculation of Tax Freedom Day. Their criticisms of Tax Freedom Day have varied over the years but typically center on essentially one main criticism. They object to Tax Freedom Day to describe the tax burden of the nation as a whole, because it may over- or understate the tax burden faced by particular taxpayers.
- Education tax credits have grown from a $4.5 billion program claimed by 4.7 million taxpayers in 1998 to a $17.4 billion program claimed by over 7 million taxpayers in 2011....
Congress is currently considering tax extenders, the renewal of expiring or recently expired tax provisions. Among the provisions is 50 percent bonus expensing, otherwise known as bonus depreciation. The...
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