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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.

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Blog Articles

6142 Results
Israel income tax system, Taxes in Israel

Movers and Shakers in the International Tax Competitiveness Index

The Index provides lessons for policymakers when they are thinking of ways to remove distortions from their tax systems and remain competitive against their peers. The further up a country moves on the Index, the more likely it is to have broader tax bases, relatively lower rates, and policies that are less distortionary to individual or business decisions. Going the other way reveals a policy preference for narrow tax bases, special tax policy tools, and rules that make it difficult for compliance.

5 min read
Child Tax Credit debate Biden Democrats Child tax credit expansion, affect labor supply work requirement and incentive Manchin

What’s Going on with the Child Tax Credit Debate?

President Biden expanded and fundamentally changed the Child Tax Credit (CTC) for one year in the American Rescue Plan (ARP) passed in March 2021. Policymakers are now deciding the future of the expansion as part of the proposed reconciliation package, but a wide range of estimates for the effects of a permanent expansion is confusing the debate.

7 min read
American Rescue Plan state tax cuts, American Rescue Plan tax cuts State Unemployment Compensation Trust Funds, Elizabeth Warren wealth tax, Some tax hikes are more damaging than others, according to Congressional Budget Office (CBO) and new Tax Foundation economic modeling.

As Inflation Rises, So Will Tax Bills in Many States

Inflation is often called a hidden tax, but in many states it yields a far more literal tax increase as tax brackets fail to adjust for changes in consumer purchasing power.

5 min read
universal basic income ubi andrew yang, means-tested transfers

Corporate Tax Revenue Hit an All-Time High in 2021

This year’s robust corporate tax collections calls into question efforts by the administration and congressional Democrats to increase the corporate tax rate and raise other corporate taxes based on claims of relatively low tax collections following the Tax Cuts and Jobs Act (TCJA) in 2017.

1 min read
Federal cigarette tax harm reduction efforts, federal cigarette tax proposal House Democrats tobacco tax New Year's Resolutions for tax policymakers. New Year's Resolutions for tax policy

Should Tax Policy Play a Role in Tobacco Harm Reduction?

In an effort to raise roughly $100 billion, the House proposal would double cigarette taxes and increase all other tobacco and nicotine taxes to comparable rates—a strategy with severe unintended consequences.

5 min read
Business tax hikes Some Corporations Pay Zero Federal Income Taxes—and That Is Not a Problem Democrats child tax credit plan. tax administration issues, tax complexity cares act. trump tax cuts who benefited taxpayer subsidies for drug ads

Which Industries Would the Tax Hikes Target?

Using Tax Foundation’s Multinational Tax Model, we estimate the effective tax rates on controlled foreign corporation (CFC) profits under current law and under each of the proposed plans for business tax hikes.

9 min read
2019 local income taxes 2019, local income tax rates

Federal Plastics Tax Is Not a Good Revenue Raiser

One of the Senate’s proposals to pay for the Build Back Better Act is a federal excise tax on virgin plastics, which are plastics that are not reprocessed or recovered.

4 min read
Analysis of the Cost-of-Living Refund Act of 2019 Sherrod Brown Ro Khanna, EITC expansion low-income credit

How Heavily Taxed Are U.S. Multinationals?

In general, the effective tax rates on the foreign profits of U.S. multinationals are not that low relative to the U.S. tax rate, contrary to popular rhetoric.

7 min read
emergency savings accounts retirement savings accounts Build Back Better plan inflation Build Back Better plan deficit carbon tax reconciliation hr3 tax prescription drugs tax help pay for reconciliation, revenue for federal government retirement savings federal reform proposals SECURE Act Securing a Strong Retirement Act of 2021

Carbon Tax: Weighing the Options for Financing Reconciliation

A carbon tax would be a less economically harmful pay-for than either personal or corporate income tax hikes and a more efficient way to reduce carbon emissions than green energy tax credits, but would come with other trade-offs.

4 min read
Debt Limit Deadline and Growing National Debt Demand Action CBO long-term budget forecast federal spending national debt and deficit CHIPS and Science Act Biden estate tax unrealized capital gains at death Federal capital gains tax collections historical data CBO releases new long-term budget outlook, The national debt is now projected to nearly double by 2050

History of Attempted Changes to Step-Up in Basis Shows Perilous Road Ahead

As Congress considers President Biden’s proposal to tax unrealized capital gains at death, the history of previous efforts suggests it faces a perilous road ahead. Lawmakers must resolve tricky design and implementation details that derailed past attempts to change how capital gains are treated when assets are passed from one generation to the next.

4 min read
American Rescue Plan Act of 2021, Covid relief federal economic relief package, Biden stimulus $1,400 payments or stimulus checks COVID-19 tax resource center. coronavirus tax policy and the coronavirus (covid-19)

Federal Judge Rules Against ARPA’s Tax Mandate

Kentucky and Tennessee won an important legal victory Friday when a federal court ruled that the American Rescue Plan Act (ARPA)’s restrictions on state fiscal autonomy were unconstitutional and enjoined (blocked) the enforcement of those provisions against both states.

7 min read