Skip to content

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.

 

Tax Foundation logo

Remembering Bill Archer

His dedication to principles, his championing of bipartisanship and fiscal responsibility, and most importantly his commitment to helping the next generation leaves not just our organization in a stronger place, but our entire nation.

3 min read
America 250th Anniversary, History of US Tax Code

What 250 Years of Tax History Reveal About the US Tax Code

Just as many parts of American life have transformed over the past 250 years, so too has the federal tax system. While most taxes levied in the 18th century are still levied in some form today, the federal government’s reliance on them, the complexity of the tax code, and Americans’ overall tax burdens have shifted considerably.

5 min read
company disclosure; company tax disclosure tax disclosure tax transparency country by country reporting cbcr

Three Questions to Ask About New Tax Transparency Regimes

The new data disclosures will draw significant attention in 2026 and beyond. However, because the data is rooted in financial accounting concepts, affected by timing issues, and shaped by inconsistent reporting regimes, it is poorly suited for drawing strong conclusions about tax policy or corporate behavior.

7 min read
America 250: The Evolution of Excise Taxes American Independence

America’s 250th: The Evolution of Excise Taxes

British taxation on the American colonies was a major catalyst for the American Revolution, but most of the tax revolts leading up to the war were in response to one tax type: excise taxes.

4 min read