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.
The Jobs and Wage Effects of a Corporate Rate Cut
Corporate tax reform done right is key to growing the economy, boosting real family incomes, and making the U.S. a better place in which to do business.
5 min read![](https://taxfoundation.org/wp-content/uploads/2017/07/Alaska-Oil-Tax-Credit-300x200.jpg)
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How the State and Local Tax Deduction Influences State Tax Policy
The state and local tax deduction isn’t just a costly federal subsidy. It also skews state and local tax policy decisions.
2 min read![United States Capitol Building, Washington, D.C. Aerial. The United States Capitol is the meeting place of the United States Congress, the legislature of the Federal government of the United States. Located in Washington, D.C., it sits atop Capitol Hill at the eastern end of the National Mall.](https://taxfoundation.org/wp-content/uploads/2017/01/US_Capitol2-300x205.jpg)
Examining Different Assumptions About the Republican Framework’s Impact on Lower Middle-Income Households
The broad conclusion here is that, in drafting the Republican Framework, lawmakers have left themselves with at least one significant lever for delivering middle class tax relief: the child tax credit.
7 min read![Washington state capital gains tax proposal, Washington capital gains tax proposal](https://taxfoundation.org/wp-content/uploads/2017/01/seattle2-300x169.jpg)
![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)
![state and local tax deduction, State Tax Changes](https://taxfoundation.org/wp-content/uploads/2016/09/states_map-e1592237888563-300x218.jpg)
What Could a Partial Repeal of the State and Local Tax Deduction Look Like?
A cap on the state and local deduction would limit tax increases for high-income taxpayers but also raise about one-quarter the revenue as full repeal.
2 min read![tax cuts and jobs act](https://taxfoundation.org/wp-content/uploads/2017/01/us-capitol-2-300x133.jpg)
Options for Improving Cost Recovery for Structures
If lawmakers are looking to maximize the positive economic effects from a tax bill, then improving tax depreciation for structures should probably be part of the conversation. Here are a few options.
10 min read![Big Six Tax Plan Framework Middle Class](https://taxfoundation.org/wp-content/uploads/2017/09/AdobeStock_137268660-e1529341248112-300x200.jpeg)
What Would the “Big Six” Framework Mean for Lower-Middle Income Households?
Based on the details we have, the Big Six tax plan would lower taxes on the bottom 80% of taxpayers, and raise the tax burden on the top 20% of taxpayers.
7 min read![](https://taxfoundation.org/wp-content/uploads/2017/01/california-flag-e1529954906893-300x200.jpg)