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Evaluating U.S. Tax Reform Options & Trade-Offs

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.

Taxes in the Internet Age, World Wide Web, E-file, and Internet Tax Policy

Taxes in the Internet Age

Today marks 55 years since two students sent the first message across the Advanced Research Projects Agency Network (ARPANET) between computers at four universities, which would later become the internet we enjoy today.

5 min read

What Sets the US and China Apart on Tax?

Broad, pro-investment tax policy matters for growth, and the US has plenty of opportunities to make improvements, particularly given the advantages our cross-Pacific rival confers on its firms.

5 min read
Trump tariffs largest tax increase Harris tax plan largest tax increase tax cuts and tax hikes historically

Placing Harris and Trump Tax Plans in Historical Context

Trump’s tariff hikes would rank as the the largest tax increase outside of wartime since 1940. Meanwhile, Harris’s tax plan would rank as the 6th largest tax increase outside of wartime since 1940.

5 min read
2026 Tax Brackets Tax Filing Tax Season

How 2026 Tax Brackets Would Change if the TCJA Expires

If Congress allows the Tax Cuts and Jobs Act (TCJA) to expire as scheduled, most aspects of the individual income tax would undergo substantial changes, resulting in more than 62 percent of tax filers experiencing tax increases in 2026.

3 min read
Donald Trump Americans Abroad Tax Compliance Relief Proposal

Americans Abroad Need Compliance Cost Relief

Trump’s proposal would bring the US more in line with most other developed economies, which tax only those who live and work within their borders.

4 min read