Tax and fiscal policy will loom large in the next president's domestic policy agenda. Nearly all of the tax cuts enacted since 2001 expire at the end of 2010 and the individual alternative minimum tax (AMT) threatens to ensnare tens of millions of Americans. While a permanent fix palatable to both political parties has proven elusive, both candidates have proposed major tax changes. This report describes how we performed our modeling and analysis, outlines the major tax proposals, and discusses the implications of their policies for the revenue raised, taxpayer economic activity, and the distribution of the tax burden.

Boomers will probably want to work longer than earlier cohorts, but their continued work requires that employers hire and retain them. Employers value older workers for their maturity, experience and work ethic, but worry about out of date skills and high costs. Slower overall labor supply growth will increase demand for older workers and occupations with higher shares of older workers will increase modestly as a share of all jobs. Future jobs will require less physical demands and more cognitive and interpersonal skills, trends that favor educated older workers, but job opportunities for less educated older workers may remain limited.

Both John McCain and Barack Obama have proposed tax plans that would substantially increase the national debt over the next ten years, according to an updated analysis by the non-partisan Tax Policy Center. Compared to current law, TPC estimates the Obama plan would cut taxes by $2.8 trillion from 2009-2018. McCain would reduce taxes by nearly $4.2 trillion. Under current law, the 2001 and 2003 tax cuts would expire in 2010 and the Alternative Minimum Tax would remain in full force.

The occupations that already employ above-average shares of workers age 55 and older rely on an educated workforce and are expected to grow at least 20 percent by 2016, double the 10 percent rate forecast for the national labor force. A new study examines how changes in the nature of work, different occupations, the characteristics of older workers, and overall labor force growth might affect future job prospects for older Americans.

Since 2001, Congress has passed a major tax bill almost every year. Most have reduced taxes significantly and, since they were not accompanied by spending cuts, the resulting deficits have increased the national debt. The tax cuts total almost $2.2 trillion over ten years, and that total may be vastly understated if some or all of the cuts are extended beyond their scheduled expiration date of 2010. In addition, the cuts exacerbated the growing problem of the alternative minimum tax (AMT). Barring legislative action, more than 33 million taxpayers will fall prey to the AMT in 2010.

Low-wage jobs can be unstable, leaving families struggling to cope with employment gaps and financial emergencies that can strike without warning. About four in five low-income families are "asset-poor," lacking enough liquid savings to live for three months at the federal poverty level without earnings. In this summary, McKernan and Ratcliffe suggest a cluster of policies that would improve financial markets and savings opportunities for low-income families across the life cycle.

This paper is a response to New Safety Net Paper 7, "Enabling Families to Weather Emergencies and Develop: The Role of Assets," by Signe-Mary McKernan and Caroline Ratcliffe.

Welfare programs require people to work, but some low-income adults struggle with major personal challenges that make it hard to find or hold down a job. In this summary, Loprest and Martinson recommend both short-term changes to current programs and longer-term efforts through a program for competitive federal matching block grants to states. These grants would support efforts to integrate programs that alleviate barriers to work with employment services and to evaluate these initiatives so policymakers can better understand what works.

This paper is a response to New Safety Net Paper 6, "Weathering Job Loss: Unemployment Insurance" by Margaret Simms.

One-third of families with children, 13.7 million households, struggle to cover the everyday costs of living but don't always succeed. With so many families straining to make ends meet, a team of Urban Institute researchers, including labor economists, health researchers, housing experts, and children's policy analysts, have created a set of interconnected proposals designed "to make work pay in today's economy."