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.
![2019 State Business Tax Climate Index](https://taxfoundation.org/wp-content/uploads/2018/09/River--300x120.jpg)
![Arkansas Tax Reform Task Force](https://taxfoundation.org/wp-content/uploads/2018/07/Arkansas-300x200.jpeg)
![France Digital Services Tax, France's digital services tax, France's digital tax, France section 301](https://taxfoundation.org/wp-content/uploads/2017/01/france-300x225.jpg)
![California](https://taxfoundation.org/wp-content/uploads/2018/09/California-300x200.jpg)
![Full expensing manufacturing business investment](https://taxfoundation.org/wp-content/uploads/2018/09/manufacturing-ENHANCED-300x200.jpeg)
Cost Recovery Treatment Short of Full Expensing Creates A Drag on Economic Growth
Full expensing is a key driver of future economic growth, and can have a larger pro-growth effect per dollar of revenue forgone than cutting tax rates.
3 min read![Republican Study Committee RSC, tax extenders, fiscal year 2020 budget](https://taxfoundation.org/wp-content/uploads/2018/09/Capitol-hill-300x208.jpg)
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![EU vat reform and EU own resources EU digital tax](https://taxfoundation.org/wp-content/uploads/2019/01/EU-flag-100-300x200.jpg)
![Affordable Care Act Tax](https://taxfoundation.org/wp-content/uploads/2017/01/healthcare2-300x200.jpg)
![International flags, Upcoming Corporate Tax Rate Reductions and Missing Profits of Nations](https://taxfoundation.org/wp-content/uploads/2015/10/international1-300x240.jpg)