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.
![Opportunity zones OZ incentive programs impact and effectiveness](https://taxfoundation.org/wp-content/uploads/2023/08/AdobeStock_321953683-300x200.jpeg)
Opportunity Zones “Make a Good Return Greater,” but Not for Poor Residents
The early evidence indicates that making a “good return greater” through Opportunity Zone tax incentives is an ineffective and poorly targeted way to raise the living standards of low-income residents.
6 min read![](https://taxfoundation.org/wp-content/uploads/2023/08/Throwout-Throwback-2023-300x263.png)
States Move Away from Throwback and Throwout Rules
As more and more states move away from throwback or throwout rules, those states that still impose these rules are becoming less attractive for businesses, which are incentivized to relocate their sales activities to non-throwback states.
6 min read![](https://taxfoundation.org/wp-content/uploads/2022/10/factory-worker-business-3-e1666881328649-300x200.jpeg)
Section 179 Expensing: Good First Step?
The Small Business Jobs Act would improve the tax treatment of investment but the proposal stops short of full expensing, leaving room for improvement.
3 min read![Italy income tax system Italy local income tax system marginal tax rates Economic impact of a digital services tax in Italy. Learn more about Italy web tax.](https://taxfoundation.org/wp-content/uploads/2019/11/Italy-Florence-e1574090250779-300x201.jpeg)
Why Italy’s Latest Windfall Profits Tax Is Still Bad Tax Policy
For many Italian banks, there hasn’t been a significant “windfall” to tax. The profit margins of Italian banks have been lower compared to other industries for the past two decades.
5 min read![College sports tax exemption and tax-free college sports discussions](https://taxfoundation.org/wp-content/uploads/2019/10/linkedin-In-Stream_Wide___college-football-NCAA-3-e1572469862343-300x158.jpg)
The Big Business of Tax-Free College Sports
Moving from one athletic conference to another can mean millions in additional revenue sharing from lucrative broadcasting contracts and other revenue streams, all tax-free.
6 min read![UN tax cooperation efforts Tax Foundation response on cross border trade and investment United Nations general assembly](https://taxfoundation.org/wp-content/uploads/2023/03/UN-tax-cooperation-efforts-Tax-Foundation-response-cross-border-trade-and-investment-united-nations-general-assembly-300x168.jpg)
Global Tax Tug of War: Comparing the UN and OECD Approaches
The United Nations (UN) is preparing to flex its muscles on international tax policy. Several developing countries say the OECD’s approach favors richer countries at their expense, and the UN hopes to fix this.
5 min read![Design Matters When Raising Taxes to Reduce the Deficit and Stabilize the Debt-to-GDP ratio US debt taxes deficits Gross Domestic Product GDP](https://taxfoundation.org/wp-content/uploads/2023/05/Design-Matters-When-Raising-Taxes-to-Reduce-the-Deficit-and-Stabilize-the-Debt-to-GDP-ratio-US-debt-taxes-deficits-300x200.jpg)
![](https://taxfoundation.org/wp-content/uploads/2023/11/icon-lightbulb-1.png)
What Is GDP and Why Should I Care About It?
GDP stands for gross domestic product and is calculated by measuring a country’s total consumption, government spending, investments, and net exports.
2 min read![Canada digital services tax Canada digital tax proposal health care premiums and Canada marginal tax rates and Canada upward mobility](https://taxfoundation.org/wp-content/uploads/2022/07/Canada-3-e1658874846477-300x200.jpeg)
Another Digital Services Tax in Sight
Canada is planning to join the club of countries that, in the past 3 years, introduced a digital services tax (DST) despite U.S. opposition and concerns expressed by Canadian businesses.
4 min read![Child Tax Credit Reform Debate Continues Tax Cuts and Jobs Act TCJA Expiration and tax policy trade-offs Family Security Act Mitt Romney and Brookings Hamilton Project](https://taxfoundation.org/wp-content/uploads/2022/04/Capitol-washington-dc-300x240.jpg)
Lawmakers Envision Different Paths for the Child Tax Credit
As the TCJA expiration nears, lawmakers face difficult choices in reforming the CTC. While revenue, distributional and economic effects are important, lawmakers should also focus on simplifying the rules and reducing the administrative challenges.
9 min read![](https://taxfoundation.org/wp-content/uploads/2023/08/thibault-penin-GrzoKN1aqSg-unsplash-300x200.jpg)
Should Massachusetts Tax Netflix?
A bill introduced in the Massachusetts House, (H. 74) would expand funding for community media programming by imposing a new tax on the gross revenues of digital streaming service providers. The sentiment is understandable, but the proposed solution leaves much to be desired.
6 min read