Skip to content

Tax Policy Blog

Stay informed with quick and accessible analysis of today's top tax policy topics. Read Tax Foundation's Tax Policy Blog for insight from our experts on tax policies across the U.S. and abroad.

To find our most recent research papers and data, click the links below.

Blog Articles

6178 Results
Montana tax reform Gianforte tax reform (Gov Gianforte reform)

Montana Adopts Individual and Corporate Income Tax Reform

Montana adopted structural reforms to both individual and corporate income taxes during the recently adjourned legislative session, enacting three bills reducing individual tax rates, simplifying the state’s individual tax system, repealing 16 tax credits, and changing the apportionment factor for corporate income tax.

5 min read
marijuana policy, cannabis policy, federal taxation of recreational marijuana, MORE Act tax Marijuana Opportunity Reinvestment and Expungement Act

Less Should be MORE with Federal Cannabis Taxation

Federal lawmakers re-introduced the MORE Act, the most significant federal legislative development on marijuana policy in 50 years. The MORE Act would impose a federal excise tax on marijuana at a rate from 5 to 8 percent.

7 min read
arizona lawmakers Arizona income tax cuts Arizona federal conformity Arizona tax cuts

Arizona Legislators Consider Lower, Flatter Income Tax

The income tax changes in HB 2900 as introduced would improve Arizona’s individual income tax structure and economic competitiveness, making the state more attractive to individuals and pass-through businesses .

8 min read
Oklahoma tax bill Oklahoma tax legislation Oklahoma budget agreement signed by Oklahoma Governor Kevin Stitt income tax cuts

Oklahoma Passes Corporate and Individual Income Tax Reductions

Last Friday, Oklahoma Governor Kevin Stitt (R) signed House Bills 2960, 2962, and 2963 into law as part of a budget agreement, bringing the legislature’s tax plans across the finish line. These bills will reduce the state’s corporate and individual income tax rates beginning in tax year 2022.

3 min read
intellectual property tax ip assets into the u.s r&d spending by the pharmaceutical industry CBO Report on R&D and Tax Policy in the Pharmaceutical Industry

CBO Report on R&D and Tax Policy in the Pharmaceutical Industry

In a new report, the Congressional Budget Office (CBO) analyzes federal policies that influence R&D spending in the pharmaceutical industry. The report highlights how taxes affect R&D investment incentives, underscoring the importance of structuring the tax code so that it is not biased against investment.

4 min read
Biden GILTI Biden global minimum tax Biden US global minimum taxBiden international tax Us corporate tax, US tax, corporate income tax, new investment

Two Important Issues that Must Be Resolved in “Global Tax Reform”

If the U.S. is suggesting a 15 percent effective rate as the minimum acceptable rate for a global agreement, then the tax bases of the various minimum taxes adopted as part of the agreement should be aligned to minimize complexities and unintended consequences.

5 min read
Wyden 199a pass-through deduction proposal Democrats proposed to expand child tax credit as part of covid relief package. Analysis of the “SALT Act” state and local tax deduction cap, Restoring Tax Fairness to States and Localities Act, SALT cap repeal, eliminate SALT cap

Tax Policy Ideas in the Republican Study Committee Budget

While much of the tax policy now under debate aims to increase the tax burden on businesses, several policies in the newly released Republican Study Committee (RSC) budget for Fiscal Year 2022 focus on reducing the tax code’s barriers to investment and saving.

3 min read
GILTI by country not as simple

GILTI by Country Is Not as Simple as it Seems

If policymakers want a recipe to dramatically expand the complexity of U.S. international tax rules and the burden on U.S. multinational businesses, then a tax on foreign earnings calculated at the country level would be the way to do it. Alternatively, policymakers could focus on mitigating the unintended consequences of GILTI and other recent international tax rules.

5 min read
Financing Additional Infrastructure Spending with Corporate Tax Increases Would Stunt Economic Growth Biden Infrastructure plan American Jobs Plan new infrastructure $1 trillion in additional infrastructure

Financing Infrastructure Spending with Corporate Tax Increases Would Stunt Economic Growth

The Biden administration’s American Jobs Plan proposal to fund infrastructure spending relies on a bet that the benefits outweigh the costs of a higher corporate tax burden. Using the Tax Foundation model, we find that this trade-off is a bad one for the U.S. economy, resulting in reduced GDP, less capital investment, fewer jobs, and lower wages.

3 min read
Australia budget 2021 to 2022 Australia budget tax proposals and Australia tax proposals in new budget lessons from down under

Tax Policy Lessons from Down Under

This week the Australian government released its latest budget proposal and two policies that stand out in its fiscal response to the pandemic should be helpful as the economic engine of the country turns back on. The first is full expensing for some investments and the second is the introduction of a loss carryback provision. The new budget takes both these temporary policies and extends them into 2023.

2 min read
Federal tobacco tax proposal state taxes Build Back Better Act Biden American Families Plan proposal to tax unrealized capital gains at death, taxing unrealized gains death proposal, capital gains at death policies tax refund tax refunds tax cut 2018 tax season tax filing

Taxing Unrealized Capital Gains at Death Is Unlikely to Raise Revenue Advertised

As part of the tax proposals in President Biden’s American Families Plan, unrealized capital gains over $1 million would be taxed at death. However, this policy would likely raise less revenue than advocates expect after considering the proposal’s impact on taxpayer behavior, including capital gains realizations, and historical capital gains and estate tax revenue collections.

5 min read
LIFO tax treatment of inventory LIFO repeal US supply chain resiliency Biden small business taxes Biden tax plan small business impact Investments in long-lived assets, such as structures, must be deducted over long cost recovery periods: up to 27.5 years (for residential buildings) or 39 years (for nonresidential buildings), cost recovery of buildings.

Many Small Businesses Could Be Impacted by Biden Corporate Tax Proposals

Policymakers should recognize that corporate tax hikes will not only impact large firms, but many smaller and younger firms as well. Considering that many of these smaller firms are significant contributors to net job growth, raising corporate taxes at this time would not be conducive for a speedy economic recovery.

2 min read
US Treasury state tax cuts limitation rule American Rescue Plan Act state and local fiscal recovery funds American Rescue Plan state tax cuts rule

Treasury Rule on State Tax Cuts Limitation Raises New Questions

Today, the U.S. Treasury issued an interim final rule on the $350 billion in State and Local Fiscal Recovery Funds provided under the American Rescue Plan Act (ARPA). The proposed rule resolves several important questions but continues to involve the federal government in state finances at an extraordinary level.

7 min read
OECD Pillar 1 Amount A proposal OECD Secretariat, OECD unified approach pillar 1, OECD pillar 1, OECD international tax, OECD unified approach digital tax, OECD multinational businesses, OECD digital tax

Recent Analysis Explores Pillar 1 Risks and the Potential for Disputes

As countries move closer to agreement on how the OECD Pillar 1 Amount A will work and which companies will be impacted by it, it is incredibly important for policymakers to continue to evaluate not just the intended effects but also the potential unintended consequences.

6 min read
Evaluating Options to Help Low-Income Households Lift After-Tax Incomes

Evaluating Options to Help Low-Income Households

While strong economic growth—fueled by higher levels of investment, productivity, and jobs—will lift after-tax incomes over time, policies that provide relief by immediately boosting after-tax incomes of lower-income households are also available. As lawmakers consider such policies, they should keep in mind the trade-offs among them.

4 min read