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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

6158 Results
cost recovery expensing capital allowances factory

Inefficiencies Created by the Tax System’s Dependence on Economic Depreciation

One idea that would help the nation’s economic recovery during the coronavirus crisis would be moving to full expensing of capital investment. The depreciation debate might seem confusing, so the question at hand is: how, when, and by what amount can businesses recognize (or recover) the cost of a capital investment, like a piece of equipment or a new warehouse, on their income tax return?

6 min read
Colorado proposition 121 Colorado proposition FF Colorado income tax reduction or cut election results 2021 tax ballot measures Colorado proposition 119 Colorado proposition 120 Colorado proposition CC, Colorado TABOR, Colorado public education, Colorado education funding

Colorado Tobacco Tax Bill Includes Positive Change

While it is understandable that lawmakers and organizers are worried about Colorado’s financial situation, they should remember that narrow taxes are volatile and disrupt markets. Excise taxes can play a role in state revenues even as policymakers appreciate that excise taxes are not viable long-term revenue tools for general spending priorities.

4 min read

New Jersey Considers Bonds Paid for by Statewide Property Tax

As New Jersey lawmakers grapple with reduced revenues due to the coronavirus pandemic, they have turned to an unusual solution: the issuance of bonds that would be repaid, if necessary, through temporarily higher sales and property taxes.

2 min read
Sports betting tax treatment of sports betting operators and gross gaming revenue

Sports Betting Will Not Solve State Budget Crises

The pandemic has left states in dire straits financially and lawmakers are getting creative in their pursuit of new revenue sources. However, it’s unlikely that revenue from sports betting will have any meaningful impact on budget shortfalls

3 min read
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Watch: Taxing the Digital Economy

What changed in the global economy that disrupted traditional means of taxation? Is it worth finding a way to include tax digital goods and services in the tax base? Why are digital services taxes so problematic? Are there better options—ways to adapt our current system without introducing complex and economically harmful policies?

2 min read
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The U.S. Trade Representative Expands Its Digital Services Tax Investigations

The U.S. Trade Representative (USTR) expanded its digital service tax investigations, announcing Section 301 investigations into digital tax policies in nine countries and the European Union. The announcement follows an investigation of the French digital services tax that was completed in 2019, after which the USTR threatened significant #tariffs in retaliation against France.

5 min read
New York Tax, New York data tax, New York tax on data,

New York Lawmakers Float New Data Tax Proposal

Taxes on digital services, digital advertising, and the sale or utilization of consumer data, which were already emerging before the #coronavirus crisis, look increasingly attractive to cash-strapped states and localities.

7 min read

Watch: Economic Recovery After Coronavirus

What are the best tax policies to encourage a smooth transition and strong economic recovery? How should goals of economic recovery and growth be balanced with revenue needs?

1 min read
EU Carbon Border Adjustment Mechanism CBAM EU carbon border tax (EU carbon tax or carbon tariff)

EU: The Next Generation

The European Commission announced new budget plans including loans, grants, and some revenue offsets. The proposals follow other support mechanisms for workers and businesses that were designed in response to the Covid-19 pandemic and economic shutdown.

5 min read

Lessons from Alberto Alesina for U.S. Lawmakers

Alesina’s work suggests that raising taxes to reduce the federal deficit and national debt would be an economic mistake. The less economically damaging path is to cut spending, what some have called austerity policies.

3 min read
Federal deductibility SBA Paycheck Protection Program (PPP) in the CARES Act. Small Business Administration Paycheck Protection Program (PPP) in the CARES Act

HEROES Act Temporarily Increases Dependent Credit Generosity

The HEROES Act would make notable expansions to all three dependent-related credits, increasing maximum credit amounts, refundability, and income eligibility phaseouts. Practically, this means that certain filers could expect to receive a larger refund for each additional hour of work, eligible dependent, and dependent care expenses if the bill became law.

5 min read