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.
![Details and analysis of the Virginia Governor Youngkin Tax Plan. See more on Glenn Youngkin tax plan.](https://taxfoundation.org/wp-content/uploads/2023/12/Virginia-Governor-Glenn-Youngkin-Tax-Plan-300x200.jpeg)
Governor Youngkin Unveils a New Tax Plan for Virginia
Virginia Governor Youngkin unveiled the contours of a tax reform plan incorporated into his forthcoming budget, which includes three major structural elements: a reduction in the individual income tax rate, a 0.9 percentage point increase in the sales tax rate, and the broadening of the sales tax base to include some “new economy” digital services.
6 min read![Kyiv Ukraine tax system competitiveness vs EU member states](https://taxfoundation.org/wp-content/uploads/2023/12/Kyiv-Ukraine-tax-system-EU-member-states-300x200.jpeg)
European Tax Policy Scorecard: How Competitive is Ukraine’s Tax System Relative to EU Member States?
In the end, the best way for the EU to support Ukraine’s post-war recovery is to guarantee its tax sovereignty, not just its territorial sovereignty.
5 min read![global tax agreement global tax deal OECD global minimum tax rules corporate minimum tax rules Secretariat Proposal, OECD Public Consultation Document, Unified Approach under pillar one profit shifting definition tax planning and avoidance foreign direct investment FDI global tax deal impact of global tax agreement OECD international tax proposal](https://taxfoundation.org/wp-content/uploads/2022/05/global-tax-deal-impact-of-global-tax-agreement-OECD-international-tax-proposal-300x199.jpeg)
The Latest on the Global Tax Agreement
The agreement represents a major change for tax competition, and many countries will be rethinking their tax policies for multinationals.
7 min read![Is the Foreign Pollution Fee Act a Carbon Price?](https://taxfoundation.org/wp-content/uploads/2023/12/carbon-emissions-300x200.jpeg)
Is the Foreign Pollution Fee Act a Carbon Price?
A national-level carbon price—a tax or cap-and-trade scheme placed on CO2 or other greenhouse gases—may seem distant in the U.S., especially since the Inflation Reduction Act, which included major climate policy, omitted one. However, policymakers on both sides of the aisle have been nibbling around the edges of carbon taxes.
5 min read![](https://taxfoundation.org/wp-content/uploads/2023/12/Boston-Tea-Party-Taxes-Anniversary-300x200.jpeg)
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What’s the Tea? 250 Years since the Boston Tea Party
Learn more about what really happened leading up to the showdown in the harbor with this educational look through tax history.
3 min read![Retirement savings tax treatment](https://taxfoundation.org/wp-content/uploads/2023/12/Retirement-savings-calculator-300x200.jpeg)
How Recent Reforms to Retirement Saving Will Impact Taxpayers in 2024 and Beyond
With Secure 2.0, lawmakers recognized and addressed several flaws in the tax code’s treatment of saving and retirement, but there is continued work to be done simplifying and expanding savings and retirement options for taxpayers.
5 min read![Ukraine tax reform options to boost Ukraine economic health and economy overall during and after the war. Explore US Marshall Plan lessons](https://taxfoundation.org/wp-content/uploads/2023/12/AdobeStock_190342091-300x169.jpeg)
Tax Reform Is Key to Ukraine’s Economic Health, Now and after the War
What historical lessons of wartime finance can Ukrainian and EU policymakers learn to put Ukraine’s economy on a path to success during, and especially after, the war?
5 min read![Policymakers Must Weigh the Revenue, Distributional, and Economic Trade-Offs of SALT Deduction Cap Design Options](https://taxfoundation.org/wp-content/uploads/2023/12/calculator-chart-data-300x200.jpeg)
Policymakers Must Weigh the Revenue, Distributional, and Economic Trade-Offs of SALT Deduction Cap Design Options
The fate of the $10,000 cap on state and local tax (SALT) deductions remains uncertain, with some policymakers pushing for an increase or repeal of the cap before its scheduled expiration in 2026.
6 min read![Indiana tax reform and Indiana local income taxes](https://taxfoundation.org/wp-content/uploads/2023/12/Indiana-tax-reform-and-Indiana-local-income-taxes-300x200.jpeg)
Are Local Income Taxes Compatible with State Tax Reform? Insights from Indiana
When it comes to comprehensive tax reform, poorly designed local tax policies can offset any improvements brought about by state tax policies.
6 min read![Moore tax case of Moore vs United States consumption tax base](https://taxfoundation.org/wp-content/uploads/2023/12/Moore-tax-case-consumption-tax-base-300x200.jpeg)
Why Moore v. U.S. Won’t Get Us a Consumption Tax Base
At first glance, a ruling for the plaintiffs in Moore might seem to solve some of the timing problems with the U.S. tax system. Unfortunately, upon greater inspection, such a ruling might create new timing problems. And the more rigid the ruling, the harder it would be to fix the timing problems it would create.
5 min read