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.
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
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
Is the European Commission’s Tax Omnibus Proposal a Step in the Right Direction?
The European Commission’s new Tax Omnibus proposal marks a notable step towards improving the simplicity and competitiveness of the EU Single Market.
8 min read
What Pennsylvania’s Digital Ad Tax Proposal Would Actually Do
Pennsylvania lawmakers are looking to impose the Commonwealth’s existing telecom gross receipts tax (GRT) on companies providing digital advertising services in Pennsylvania.
5 min read
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
Uncapping the Payroll Tax Would Be the Largest Tax Increase in Decades—and Still Wouldn’t Save Social Security
It is good to see senators talking about the Social Security crisis that is rapidly unfolding. But any serious proposal has to grapple with the trade-offs of different reforms and accept that the fix will come from both sides of the ledger: taxes and expenditures.
5 min read
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
Failing to Renew the USMCA Would Increase Tariff Uncertainty and Harm Americans
With nearly 2 million US jobs tied to trade with Canada and Mexico, stalling renewal — or withdrawing outright — would compound tariff uncertainty at exactly the wrong time.
6 min read
US Has Most Progressive Tax System in OECD, New Index Shows
A study from the Fraser Institute finds the US tax code is highly progressive relative to other OECD countries.
7 min read
Reform UK Proposal to Exempt Overtime from Income Tax Sounds Appealing but Is Highly Flawed
The Reform UK proposal to exempt overtime pay from income tax—framed as a “hard work bonus”—may be politically appealing, but it’s a flawed idea that undermines economic fairness, distorts labor markets, and jeopardizes tax revenues.
4 min read