January 17, 2018

Episode 8: Does the Tax Law Signal Change in How Parties use Tax Credits and Deductions?

The U.S. has a long history of spending through the tax code, limiting revenue to provide benefits. But Congress just passed a major tax cut that limits some tax deductions, keeps others, and expands the child tax credit. How do the latest Republican efforts fit historical patterns? Christopher Faricy‘s recent article finds that Republicans usually limit credits and expand deductions, whereas Democrats do the reverse. Yet Joshua McCabe’s research finds that the child tax credit is historically a Republican policy; but its targeting is limited by a debate focused on tax relief rather than income supplementation. Both say the latest law could limit the value and political salience of major tax deductions.

The Niskanen Center’s Political Research Digest features up-and-coming researchers delivering fresh insights on the big trends driving American politics today. Get beyond punditry to data-driven understanding of today’s Washington with host and political scientist Matt Grossmann. Each 15-minute episode covers two new cutting-edge studies and interviews two researchers.You can subscribe to the Political Research Digest on iTunes here.