Tax Policy Blog

Carbon Taxes in the Global Market: Changes on the Way?

As policymakers on both sides of the Atlantic debate the way forward on carbon border adjustment mechanisms, it is important to keep principles of good tax policy in mind.

Impact of Elections on French Tax Policy and EU Own Resources

The French election results are paralyzing for French pro-growth tax reforms, pessimistic for EU own resources, and dire for overall economic certainty.

4 Things to Know About the Global Tax Debate

The Biden administration has been supportive of the negotiations, but the changes should be reviewed in the context of recent policy changes in the U.S. and elsewhere, the general landscape of business taxation in the U.S., and potential challenges and risks arising from the global tax deal.

Why FDI Matters for U.S. Employment, Wages, and Productivity

Contrary to the Biden administration’s claims, raising taxes on cross-border investment would hurt U.S. economic growth and jobs. Research shows that FDI creates jobs in the U.S. and raises workers’ wages and productivity.

The Legacy of Harvard Economist Dale Jorgenson

Dr. Jorgenson’s work has been instrumental in convincing many in the tax policy community to take seriously the need to factor in the economic effects of taxation on capital formation, productivity, wages, and employment in forecasting the welfare and federal budget consequences of changes in tax policy.

Pro-Growth Tax Reforms Throughout the Republican Study Committee’s FY 2023 Budget

The United States needs to grow its way out of inflation and set the economy up for continued growth—the tax code provides tools for policymakers to do just that.

Biden’s FY 2023 Budget Would Result in $4 Trillion of Gross Revenue Increases

President Biden’s budget proposes several new tax increases on high-income individuals and businesses, which combined with the Build Back Better plan would give the U.S. the highest top tax rates on individual and corporate income in the developed world.

3 Takeaways from the New Congressional Budget Office Outlook

The CBO projections show policymakers’ top priority over the next five years will need to be cleaning up our country’s fiscal situation while maintaining a pro-growth and competitive tax code.

Wisconsin Losing Ground to Tax-Friendly Peers

While Wisconsin has long been one of the highest-tax states in the nation, that distinction is increasingly detrimental as businesses and individuals enjoy increased economic and geographic mobility.

Two Dozen States Show Why the Kansas Critique of Income Tax Cuts Is Mistaken

The Kansas experience is so infamous that “what about Kansas?” is almost guaranteed to be a question—sometimes as a retort, but often a genuine expression of concern—any time any state explores tax relief. But what about the other two dozen states that have cut their income taxes since then?

Oklahoma Should Prioritize Pro-Growth Relief, Not Gimmicky Rebate Checks

If Sooner State policymakers want to use a portion of their higher revenues to make the economy work better for all Oklahomans, they should consider repealing the franchise tax, trimming the income tax, or both—paired, if desired, with targeted aid to those in the greatest need—not writing a single round of gimmicky checks.

Delaying R&D Amortization Generates Short-Term Revenue but No Long-Term Economic Benefit

Starting this year, firms must amortize their research and development (R&D) expenses over five years rather than immediately deduct them from taxable income, a policy change designed to raise federal tax revenue in the short term.

Time for an Updated Impact Assessment of the Global Tax Deal

Treasury Secretary Janet Yellen offered estimates from the EU Tax Observatory as evidence that the Polish government would benefit from supporting the global tax deal. Unfortunately, evidence was, at best, out of date.

Europe Opened the Pandora Box of Reduced VAT Rates

With this new VAT directive, the EU has invited member states to adopt policies that create new complexities, are poorly targeted, and undermine an Own Resource.

Public and Private R&D Are Complements, Not Substitutes

U.S.-China Trade War Hurt American Industries and Workers

While the U.S. tariffs were intended to protect American industries, they have largely hurt the U.S. economy. Rather than pass on the tariffs to Chinese consumers, analysis shows that most U.S. firms simply bore the costs.

Evaluating Wyoming’s Business Tax Competitiveness

Wyoming’s low taxes are highly attractive, but policymakers are still hard at work helping the state achieve broader economic development goals.

The Aftermath of Arizona’s Proposition 208 and the Potential for a Flat Tax

Arizona now joins a growing cohort of states that are moving toward a flat income tax. Pending revenue triggers, the income tax rate will be reduced to 2.5 percent giving Arizona one of the lowest individual income tax rates in the country.

FDA Menthol Ban Would Boost Smuggling, Reduce Revenues, with Few Health Benefits

Learn more about the FDA’s proposal to ban the sale of menthol cigarettes and flavored cigars. Including its effect on revenue & public health measures.

Tax Filing Season: Options for Improvement

Efforts to improve the taxpayer experience should focus on the IRS’s operations and include structural improvements to the tax code.