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.
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Reviewing the Deadweight Loss Effects of High Tax Rates
Deadweight loss effects demonstrate why policymakers should pursue a more efficient tax code to achieve distributional objectives, rather than pursuing high tax rates that create disproportionately high economic costs.
3 min read![Pittsburgh Jock Tax, Pittsburgh Tax, Pittsburgh Steelers](https://taxfoundation.org/wp-content/uploads/2019/11/AdobeStock_133973662-e1573225796557-300x200.jpeg)
![Election 2019: Ballot Measures, Texas Constitutional Amendment income tax ban, Texas ban on income tax, proposition 4, Texas voters approve constitutional ban on state income tax, Election Day 2019, Election 2019 results, Election Results](https://taxfoundation.org/wp-content/uploads/2019/11/Colorado-Red-Rocks-e1573075465423-300x200.jpeg)
![Elizabeth Warren Medicare for All, Elizabeth Warren Medicare for All plan, Medicare for all revenue, Warren Medicare for all tax revenue](https://taxfoundation.org/wp-content/uploads/2019/11/linkedin-In-Stream_Wide___Warren-wealth-5-e1573063161511-300x158.jpg)
![2019 Election Day 2019, state and local tax ballot measure results, 2019 tax ballot measures, 2019 ballot results](https://taxfoundation.org/wp-content/uploads/2019/11/State-Ballot-Measure-Results-2019-02-e1572899140330-300x200.png)
Results of 2019 State and Local Tax Ballot Initiatives
Election Day 2019 will feature notable tax-related ballot measures in California, Colorado, New Mexico, Pennsylvania, Texas, and Washington. Once the polls close tonight, beginning with Pennsylvania and Texas at 8 PM EST, we will begin tracking the results as they come in.
4 min read![Ron Wyden PROGRESS Act Ron Wyden bill business access](https://taxfoundation.org/wp-content/uploads/2019/11/tax-filing-tax-work-1040-300x159.png)
![Elizabeth Warren tax proposals, Elizabeth Warren Medicare for All, Elizabeth warren medicare-for-all tax, Elizabeth warren medicare for all tax proposals](https://taxfoundation.org/wp-content/uploads/2019/11/warren-4tr-300x167.png)
Reviewing Elizabeth Warren’s Tax Proposals to Fund Medicare for All
Elizabeth Warren released a detailed plan on how she would fund Medicare For All, proposing a wealth tax, financial transactions tax, mark-to-market taxation of capital gains income, and a country-by-county minimum tax, among other reforms.
5 min read![West Virginia manufacturing tax burden, West Virginia tax burden on manufacturing, West Virginia taxes on manufacturing, West Virginia business tax burden](https://taxfoundation.org/wp-content/uploads/2019/11/West-Virginia-e1572618741464-300x225.jpg)
![France tax plan, France business tax plan, France tax cuts, French tax cuts, France personal income tax cuts, French income tax cuts, France Unveils Billions in Tax Cuts to Reset Pro-Business Plan, The French government said it would reduce taxes on individuals and businesses, Emmanuel Macron, France business tax reform, France business tax plan, 2020 France tax plan, 2020 France tax cuts](https://taxfoundation.org/wp-content/uploads/2019/10/France-arch-e1572542797843-300x195.jpg)
![NCAA scholarships, NCAA student-athletes tax, Richard Burr NCAA scholarship, Richard Burr scholarship tax, tax scholarships](https://taxfoundation.org/wp-content/uploads/2019/10/college-football-NCAA-3-e1572469234567-300x184.jpg)