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 Biden Administration’s Misguided Approach to Defining “American” Companies U.S. Trade Representative Ambassador Tai](https://taxfoundation.org/wp-content/uploads/2024/02/US-international-tax-policy-300x200.jpeg)
The Biden Administration’s Misguided Approach to Defining “American” Companies
What does it mean to be an American company?
4 min read![Top 1 percent of US taxpayers pay about 31 percent of all federal taxes](https://taxfoundation.org/wp-content/uploads/2024/02/CBOhouseholdData_24_2-300x240.png)
New CBO Report Shows Pandemic Response Sharply Reduced Inequality, Increased Progressivity in 2020
The pandemic led to one of the largest fiscal responses in U.S. history, impacting households across the income distribution.
4 min read![state flat tax trend and state flat income taxes 2024](https://taxfoundation.org/wp-content/uploads/2022/11/state-flat-tax-trend-and-state-flat-income-taxes-2024-300x250.png)
The State Flat Tax Revolution: Where Things Stand Today
In 2021 and 2022 alone, more states enacted laws converting graduated-rate individual income tax structures into single-rate income tax structures than did so in the whole 108-year history of state income taxation up until that point.
10 min read![telework and remote work tax season discussion](https://taxfoundation.org/wp-content/uploads/2024/02/telework-and-remote-work-tax-season-discussion-300x200.jpeg)
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How Are Remote and Hybrid Workers Taxed?
Working from home is great. The tax complications? Not so much.
4 min read![Tax Foundation Europe](https://taxfoundation.org/wp-content/uploads/2024/02/TF23_generic_EU-01-300x141.png)
Tax Foundation Europe Launches Website and Prepares Brussels Office
The landscape of tax policy is changing—and we at the Tax Foundation are changing with it.
3 min read![US deficits, spending, and taxes CBO Budget and Economic Outlook 2024](https://taxfoundation.org/wp-content/uploads/2024/02/AdobeStock_299870691-300x200.jpeg)
Major Takeaways from CBO’s Updated Long-Term Outlook
The CBO projects deficits will be higher than historical levels, largely due to growth in mandatory spending programs While some recent legislation has reduced the deficit, the Inflation Reduction Act is proving to be more expensive than originally promised.
5 min read![Canada Tax-Free Savings Accounts (TFSA) lessons for US lawmakers](https://taxfoundation.org/wp-content/uploads/2024/02/Canada-money-300x200.jpeg)
Canada’s Tax-Free Savings Accounts Are a Huge Success. U.S. Lawmakers Should Take Note
For most Americans, saving is a taxing experience. Our neighbors to the north have found a better solution—and U.S. lawmakers should take note.
5 min read![Junk fees ban from the FTC Biden tax hike proposals live on Build Back Better Inflation Reduction Act Biden tax rates](https://taxfoundation.org/wp-content/uploads/2022/03/Washington-DC-capitol-national-mall-white-house-DC-skyline-e1646089530835-300x200.jpeg)
Proposed “Junk Fee” Rule Would Create Inadvertent Tax Headaches
One particular provision of the Biden administration’s proposal to ban so-called “junk fees” would have unintended consequences.
5 min read![Treasury Finds TCJA Interest Limitations Had Small Impact on Corporate Activity](https://taxfoundation.org/wp-content/uploads/2024/02/US-Treasury-Department-Tax-Foundation-300x199.jpeg)
Treasury Finds TCJA Interest Limitations Had Small Impact on Corporate Activity
Limiting interest deductibility continues to be a worthwhile policy goal, but given the current climate, policymakers should opt to pair any further limitations with other pro-growth policies such as full expensing to ensure firms’ incentives to invest are preserved.
3 min read![Latest House GOP SALT Deduction Cap Proposal, SALT Marriage Penalty Elimination Act, Increases Budget Deficit, Creates New Tax Cliffs, and Is Regressive](https://taxfoundation.org/wp-content/uploads/2024/02/US-Capitol-Congress-tax-budget-calculator-money-300x200.jpeg)
Latest SALT Deduction Cap Proposal Increases Budget Deficit, Creates New Tax Cliffs, and is Regressive
From a revenue standpoint, about $9 billion of the $11.7 billion in lost revenue would accrue to joint filers earning more than $200,000.
5 min read