How did the TCJA change taxes of families with children? Q.How did the TCJA change taxes of families with children? A.The 2017 Tax Cuts and Jobs Act increased the standard deduction, eliminated personal exemptions, doubled the maximum child tax credit (CTC) from $1,000 to $2,000 per child under age 17, and added a $500 nonrefundable credit for children ineligible for the $2,000 credit. The legislation also changed how the earned income tax credit (EITC) is indexed, causing the credit to grow more slowly over time. Despite these changes, overall tax benefits for families with children remained roughly the same as under prior law. The changes not related to the EITC expire after 2025. Read more about How did the TCJA change taxes of families with children?
What is carried interest, and how is it taxed? Q.What is carried interest, and how is it taxed? A.Carried interest, income flowing to the general partner of a private investment fund, often is treated as capital gains for the purposes of taxation. Some view this tax preference as an unfair, market-distorting loophole. Others argue that it is consistent with the tax treatment of other entrepreneurial income. Read more about What is carried interest, and how is it taxed?
What would the tax rate be under a broad-based income tax? Q.What would the tax rate be under a broad-based income tax? A.That depends on what exclusions, credits, and deductions are left in and whether revenue neutrality is a must. Read more about What would the tax rate be under a broad-based income tax?