Congressional Budget Office

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Taxes

Over the past 40 years, federal revenues have ranged from nearly 21 percent of GDP, in fiscal year 2000, to less than 16 percent, in fiscal years 2009 through 2012; they have averaged about 18 percent of GDP over the four decades. In addition to projecting the future course of federal revenues, CBO analyzes the budgetary and economic effects of various features of the federal tax system and the effects of potential changes to current tax rules.

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  • Analysis of the President's Budget
  • Budget and Economic Outlook
  • Distribution of Federal Taxes

  • Related Documents

  • Effective Marginal Tax Rates for Low- and Moderate-Income Workers
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Illustrative Examples of Effective Marginal Tax Rates Faced by Married and Single Taxpayers: Supplemental Material for Effective Marginal Tax Rates for Low- and Moderate-Income Workers

data or technical information

November 15, 2012

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CBO Releases a Report on Effective Marginal Tax Rates for Low- and Moderate-Income Workers

blog post

November 15, 2012


related publications


  • Offsetting Costs of a Carbon Tax on Low-Income Households

    November 16, 2012

  • The Estimated Costs to Households From the Cap-and-Trade Provisions of H.R. 2454

    June 19, 2009

  • The Supplemental Nutrition Assistance Program

    April 19, 2012

  • Options for Offsetting the Economic Impact on Low- and Moderate-Income Households of a Cap-and-Trade Program for Carbon Dioxide Emissions

    June 17, 2008

  • The Estimated Costs to Households From the Cap-and-Trade Provisions of H.R. 2454

    June 19, 2009

  • The Distributional Consequences of a Cap-and-Trade Program for CO2 Emissions

    March 12, 2009

  • The Distribution of Revenues from a Cap-and-Trade Program for CO2 Emissions

    May 07, 2009
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Offsetting a Carbon Tax’s Costs on Low-Income Households: Working Paper 2012-16

working paper

November 13, 2012

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Abstract

Terry Dinan

Imposing a tax on carbon dioxide emissions would reduce the damage from climate change but would also impose a larger burden, relative to income, on low-income households than on high-income households. This paper evaluates two broad groupings of options for reducing the regressive effects of a carbon tax; one group of options would affect large segments of the economy, for example by reducing payroll taxes, and the other group of options would be targeted at low-income households, for example by providing an additional payment to households currently receiving electronic transfer benefits. Each option is evaluated based on the percent of low-income households that it would affect, whether it would provide comparatively larger benefits for lower-income households, its administrative costs, and its implications for economic efficiency, specifically whether it would increase incentives to work and invest and whether it would preserve the incentives to reduce emissions that the carbon tax would create. The broad based options could potentially provide support for a relatively large share of low-income households, but some of those options would provide relatively small benefits to those households. Options specifically targeting low-income households could be most effective in reaching households that do not file income taxes or that do not have earnings. Three of the seven options considered would increase the incentive to work or invest and all but one of the options would preserve the incentive to reduce emissions of carbon dioxide.


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Taxation of Owner-Occupied and Rental Housing: Working Paper 2012-14

working paper

November 5, 2012

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Abstract

Larry Ozanne

This paper illustrates how the different tax treatments of owner-occupied and rented houses affect the relative costs of owning and renting. In the examples, a representative landlord computes the rental rate (the ratio of the rent to the value of the house) required to break even on an investment in a house. Potential homeowners compare that market rental rate as a tenant with an implicit rental rate that reflects the cost of owning a home.

The tax advantages tend to make owning more advantageous than renting for higher-income households, but lower-income households can find renting cheaper than owning. The paper also illustrates how limiting or eliminating certain tax advantages would change the cost of owning relative to renting. While the precise comparisons are specific to the conditions detailed in the examples, their general implications are broadly applicable.


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How Does CBO Model the Response of Labor Supply to Changes in Tax and Spending Policies?

blog post

October 25, 2012


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As the Population Ages, Social Security’s Spending Is Projected to Outpace Its Tax Revenues

blog post

October 2, 2012


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CBO Releases a Report on the Taxation of Capital and Labor Through the Self-Employment Tax

blog post

September 27, 2012


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The Taxation of Capital and Labor Through the Self-Employment Tax

report

September 27, 2012

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Presentation at the University of Michigan

blog post

September 21, 2012


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Choices for Federal Spending and Taxes

presentation

September 21, 2012

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