White House Forecasts Sharp Rise in Spending on Low-Income Tax Credits

For over 50 years, Bloomberg Tax’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

The sagging economy is expected to push more individuals into income levels that allow them to qualify for programs such as the earned income tax credit, dramatically increasing the cost of recent expansions of those credits, the White House Office of Management and Budget says. OMB's mid-session review notes that total federal spending on seven refundable tax credits—including the child tax credit—would rise $34 billion over the next 10 years due to economic conditions and revisions to both cost estimates and the administration policy proposals as a result.

Request Daily Tax Report