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The Tax Foundation is the nation’s leading independent tax policy nonprofit. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and global levels. For over 80 years, our goal has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity.
The Tax Foundation’s Taxes and Growth Program provides a unique setting where tax professionals and business executives will learn how the different pieces of the U.S. tax code can affect the nuances of the economy.
By working directly with Tax Foundation federal economists and the TAG modeling team, we provide a setting for business professionals to stay up-to-date on ongoing tax modeling projects plus help identify and provide input on potential research and new areas of tax modeling.
Our TAG model is one of the most advanced and robust tax models being used today. Here are just a few of the things it can do:
In November of 2017, the House and Senate released their versions of the Tax Cuts and Jobs Act (TCJA). Policymakers wanted our analysis to set the narrative for how the media would report on the plan’s growth potential. Our concluding analysis and scoring of the final TCJA in December found that it would significantly lower the marginal tax rates and the cost of capital. As a result, we found the bill would lead to a 1.7 percent increase in GDP over the long term, 1.5 percent higher wages, and an additional 339,000 full-time equivalent jobs.
In June of 2016, the House GOP released a comprehensive tax reform plan. Upon extensively analyzing each aspect of the plan, we found it would: reduce federal tax revenue by $2.4 trillion over the next decade, reduce marginal tax rates on labor, and substantially reduce marginal tax rates on investment. As a result, we estimate that the plan would boost long-run GDP by 9.1 percent, translating into 7.7 percent higher wages and 1.7 million more full-time equivalent jobs. Due to the larger economy and the broader tax base, the plan would reduce revenue on a dynamic basis by only $191 billion over the next decade.
Tax policy was a driving topic in the 2016 presidential debates, and 13 of the candidates issued comprehensive tax reform plans. We scored and broke down the 13 candidates’ tax plans to give a side-by-side comparison of the details and economic effects of each candidate’s tax plan.
In May of 2014, we analyzed Camp’s Tax Reform and compared the economic outcomes on jobs, wages, and taxation of capital against four alternative tax plans. When compared to current law, we found that Camp’s plan would slightly raise the GDP by 0.22 percent over ten years, raise taxes on capital by 0.18 percent, and add 486,000 jobs while slightly decreasing pre-tax wages by 0.21 percent.
You can find our entire catalog of research and tax scoring of presidential and past tax plans here.
Are you interested in working more closely with Tax Foundation experts to help us:
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