In the tax year 2020, more than 164 million people sent their tax returns to the Internal Revenue Service. They used more than 159 million tax credit claims worth more than $277 billion to lower the amount of taxes they had to pay.
The tax system shouldn't be used by lawmakers to provide social or economic benefits. Using the tax code to distribute benefits presents a barrier for recipients who lack the income and tax obligation required to qualify for a tax subsidy, in addition to the distortions that targeted tax deductions and credits can lead to.
In the tax year 2020, more than 164 million people sent their tax returns to the Internal Revenue Service. They used more than 159 million tax credit claims worth more than $277 billion to lower the amount of taxes they had to pay.
