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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

6186 Results

Biden’s Proposal Would Shift the Distribution of Retirement Tax Benefits

One of Biden’s tax proposals that has gotten little attention is a change that would shift the benefits of tax deferral in traditional retirement accounts toward lower- and middle-income earners. The plan would reduce the tax benefit for those earning above $80,250 but under $400,000, violating Biden’s tax pledge to not raise taxes on earners below the $400,000 threshold.

5 min read
President Trump tax plan and proposals second term

President Trump Outlines Second Term Tax Ideas

Broad themes of the president’s agenda include providing tax relief to individuals and tax credits to businesses that engage in desired activities, while the status of expiring TCJA provisions and tariffs seems uncertain.

4 min read
Biden Made in America manufacturing plan to boost R&D

Reviewing Joe Biden’s Tax Vision

Biden’s tax vision is twofold: higher taxes on high-income earners and businesses paired with more generous provisions for specific activities and households.

4 min read
The Sticks: Inflation Reduction Act’s Energy-Related Tax Increases

How the CARES Act Fixed a Tax Bias Against Green Investment

One under-discussed part of the CARES Act, passed in March to provide economic relief during the COVID-19 epidemic, is a correction to a drafting error in the Tax Cuts and Jobs Act of 2017, often known as the “retail glitch.”

3 min read

Economic Recovery and Deductions for Worker Training

Tax treatment can affect investment decisions. Extending expensing treatment (full and immediate deductions) to all forms of capital investment, human and physical, would help facilitate sustainable long-run economic growth.

2 min read
Nevada Mining tax increase, Nevada mining industry

Nevada Hoping to Extract Revenue with Mining Tax Increase Amendment

Nevada is not alone in its need to find revenue, but it should take care not to embrace bad tax policy in the process. Significant rate increases, a shift in the tax base, and provisions which make it easier to hike taxes than to cut them would heavily burden the mining industry in the state.

3 min read
Senator Harris’s Rent Relief Tax Credit is a Well-Intentioned Misfire

Estimating Neutral Cost Recovery’s Impact on Affordable Housing

Housing affordability was a major issue even before the COVID-19 crisis, but the current economic situation has made it more salient. Immediate support for people struggling makes sense now, but lawmakers should also consider long-term solutions to the problem of high rents, namely by expanding the supply of housing.

5 min read
Learn more about the proposed Canada digital tax. Canada digital services tax

Higher Taxes Might Not Be the Solution for Canada and its Provinces

First, the introduction of the wealth tax would significantly impact international capital flows and cause large economic dislocations in the short term. Second, provinces that are looking at raising their corporate tax rates might hinder capital attraction, growth, and economic recovery.

4 min read
New evidence suggest tax rates influence migration decisions, some may move to a lower-tax area

Evidence Suggests that Tax Rates Influence Migration Decisions

Individuals respond to taxes by changing their behavior. Hence, when there are tax differences between countries, some might respond by moving to a lower-tax area. For higher-income individuals, the benefits of moving as a result of higher taxes are greater because they have more income or wealth at stake.

4 min read
wealthy inequality, pensions and social security, new research from federal reserve bank of boston Massachusetts ban on flavored cigarettes, Massachusetts ban on flavored tobacco

Massachusetts Ban of Flavored Cigarettes Is Getting Expensive

Aside from public health concerns, a ban on flavored tobacco, especially when including cigarettes, has significant tax implications and could result in unintended consequences such as increased smuggling. In Massachusetts, more than 20 percent of cigarettes smoked are purchased out of state.

5 min read

Coronavirus Assistance for American Families Act Would Provide More Generous Rebates for Dependents

On Thursday, U.S. Senators Marco Rubio (R-FL), Bill Cassidy (R-LA), Steve Daines (R-MT), and Mitt Romney (R-UT) released the Coronavirus Assistance for American Families Act (CAAF), which would provide payments of $1,000 to adults and children with Social Security numbers, subject to income limits used in the original round of rebates. Among other modifications, it would be more generous to households and families with children when compared to the original rebates distributed under the CARES Act.

5 min read
State Income Tax Revenue from Unemployment Compensation SMART Act, state and local aid, state tax revenue collections beat state revenue expectations in FY 2020 coronavirus pandemic

State Income and Sales Tax Revenues Slide in Second Quarter

Today marked the release of second-quarter GDP data and provides a new glimpse into early changes in state and local revenues and spending. All told, second-quarter state and local tax receipts came in about 3.8 percent lower than they did in the same quarter a year ago. Income and sales taxes fell considerably while property and excise tax collections remained stable.

3 min read