February 7, 2006
What's New?
As the House and Senate prepare to reconcile bills that may extend the expiring reduced tax rates on dividends and capital gains, the Tax Foundation has released a new "Fiscal Fact" exploring the importance of dividend income among low-income seniors.
"Our analysis of seniors earning dividends shows that low-income seniors who file tax returns depend more heavily on dividend income than high-income seniors," said Staff Economist Gerald Prante, author of the new analysis. "As a result, the after-tax incomes of low-income seniors would be disproportionately hurt by an expiration of the current reduced tax rates on dividends."
Click here to read the full analysis.
For additional information on the expiring reduced tax rates on dividends and capital gains, please see the following:
As Treasury officials continue debating the tax reform recommendations of the President's Advisory Panel on Federal Tax Reform, the Tax Foundation has released a new "Fiscal Fact" analyzing the distribution of benefits from the home mortgage interest deduction—a tax preference criticized by the tax reform panel.
"Despite recent attempts to portray the mortgage interest deduction as vital to middle-income family budgets, IRS data tell a different story," said Staff Economist Gerald Prante. "More than one-third of mortgage interest deductions are claimed by taxpayers earning over $100,000, and few low- and middle-income taxpayers benefit from it."
Click here to read the full analysis.
In the midst of corporate earnings season on Wall Street, the Tax Foundation has released a new "Fiscal Fact" exploring whether high corporate income tax payments by oil companies undermine the case for a windfall profits tax.
"Many who propose taxing energy companies more heavily than other firms believe these firms have escaped normal taxpaying requirements, leaving other industries to carry a heavier load," said Scott A. Hodge, co-author of the analysis. "But our analysis of fourth-quarter financial statements from several large oil companies show this isn't the case."
Click here to read the full analysis.
For additional information on oil industry profits and taxation, please see the following:
