The economic crisis caused by the coronavirus pandemic poses a triple challenge for tax policy in the United States. Lawmakers are tasked with crafting a policy response that will accelerate the economic recovery, reduce the mounting deficit, and protect the most vulnerable.
To assist lawmakers in navigating the challenge, and to help the American public understand the tax changes being proposed, the Tax Foundation’s Center for Federal Tax Policy modeled how 70 potential changes to the tax code would affect the U.S. economy, distribution of the tax burden, and federal revenue.
In tax policy there is an ever-present trade-off among how much revenue a tax will raise, who bears the burden of a tax, and what impact a tax will have on economic growth. Armed with the information in our new book, Options for Reforming America’s Tax Code 2.0, policymakers can debate the relative merits and trade-offs of each option to improve the tax code in a post-pandemic world.
![US Consumption Tax vs Income Tax Reform: Details & Analysis](https://taxfoundation.org/wp-content/uploads/2023/10/AdobeStock_137677789-300x200.jpeg)
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Parts of the TCJA Are Expiring Soon—Here’s What That Means for You
Unless Congress acts, Americans are in for a tax hike in 2026.
3 min read![2023 Tax Extenders Expiring TCJA Business Tax Provisions and Child Tax Credit Year-End Tax Deal](https://taxfoundation.org/wp-content/uploads/2023/11/2023-Tax-Extenders-Expiring-TCJA-Business-Tax-Provisions-and-Child-Tax-Credit-Year-End-Tax-Deal-300x200.jpeg)
Tax Extenders in 2023: Three Major Business Provisions and an Expanded Child Credit?
In Congress, both parties have expressed widespread support for improving the treatment of R&D and potentially extending some or all of the major business provisions, while the White House and congressional Democrats have indicated interest in an expanded child tax credit, suggesting potential for a deal.
6 min read![Tim Scott tax plan cost recovery tax proposals](https://taxfoundation.org/wp-content/uploads/2023/11/Tim_Scott_3-3-2022-300x200.jpg)
Tim Scott Suspends 2024 Campaign but the Need for His Cost Recovery Tax Policies Remains
While not perfect, Senator Scott provided a more detailed and sound tax plan than other 2024 candidates, and he prioritized pro-growth tax reforms like full cost recovery.
4 min read![UK full expensing permanent United Kingdom business tax reform](https://taxfoundation.org/wp-content/uploads/2023/11/UK-full-expensing-permanent-United-Kingdom-business-tax-reform-300x167.jpeg)
Full Expensing to Be Made Permanent in the United Kingdom
The policy will likely raise GDP by 0.9 percent, investment by 1.5 percent, and wages by 0.8 percent, relative to a return to the pre-2021 law.
3 min read![Tax competition and the global minimum tax: the latest on the global tax agreement at the OECD](https://taxfoundation.org/wp-content/uploads/2021/10/tax-competition-global-minimum-tax-global-tax-agreement-3-300x200.jpg)
What’s Next for Tax Competition?
The rules of tax competition are changing with the recent agreement on a global minimum tax and other changes to tax rules around the world, but that does not mean the contest is over.
5 min read![](https://taxfoundation.org/wp-content/uploads/2023/11/AdobeStock_430722239-300x190.jpeg)
Assessing the EU Tax Observatory’s View on Profit Shifting and the Global Minimum Tax
The EU Tax Observatory has taken an extreme view in assessing the global minimum tax. The rules were not meant to immediately reduce the stock of shifted profits or align profitability levels more closely with employment costs. The rules do change incentives for multinationals, but profits may continue to remain in low-tax jurisdictions for many years.
6 min read![Future of EU tax policy full expensing cost recovery corporate taxation](https://taxfoundation.org/wp-content/uploads/2023/05/EU-tax-policy-2-300x199.jpg)
Is EU VAT Compliance Actually Improving?
While the European Commission focuses on improving VAT compliance, policy is a major contributor to VAT revenue losses. The VAT actionable policy gap is 15.65 percent, more than triple the compliance gap.
5 min read![US personal saving rate retirement security tax reform](https://taxfoundation.org/wp-content/uploads/2023/11/US-personal-saving-rate-retirement-security-tax-reform-300x169.jpeg)
Dwindling Savings and Increasing Financial Stress Highlights Need for Tax Reforms
The uncertain future of American finances in a time of potential economic instability points to the need for tax reforms that encourage individuals to save and build financial security in a relatively simple way, such as through universal savings accounts.
6 min read![](https://taxfoundation.org/wp-content/uploads/2023/11/Moves-and-Shakers-on-the-International-Tax-Competitiveness-Index-OECD-tax-rankings-2023-300x225.jpeg)
Movers and Shakers in the International Tax Competitiveness Index
The 2023 version of the International Tax Competitiveness Index is the 10th edition of the report. Let’s take a look back and see how country ranks have changed over time.
5 min read![Jeff Bezos Move Undercuts Proposed Washington State Wealth Tax](https://taxfoundation.org/wp-content/uploads/2023/11/Jeff-Bezos-2-300x167.jpg)
Jeff Bezos’s Move Undercuts Proposed Washington State Wealth Tax
Whether tax savings motivated his move or not, the implications for Washington are very real, and serve to illustrate just how dangerous it can be to design tax systems that rely so overwhelmingly on a very small number of taxpayers choosing to stay put.
3 min read