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Taxes and the Economy

The research below explores the economics of tax policy and the intellectual underpinnings of our efforts to quantify tax changes using our dynamic Taxes and Growth (TAG) macroeconomic model.

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JCT Report Shows How Corporate Tax Breaks Have Expanded, Analysis of JCT Corporate Tax Expenditures

JCT Report Shows How Corporate Tax Breaks Have Expanded

Lawmakers should prioritize creating a tax system that supports investment more broadly rather than subsidizing specific industries and allowing broad, neutral pro-investment provisions to expire.

3 min read
Tax Foundation experts analyze ways to rein in the national debt, including US debt and deficits and federal budget and US spending and taxes

How to Rein in the National Debt

Now is the time for lawmakers to focus on long-term fiscal sustainability, as further delay will only make an eventual fiscal reckoning that much harder and more painful. Congressional leaders should follow through on convening a fiscal commission to deal with the long-term budgetary challenges facing the country.

35 min read
Details and Analysis of Canceling the Scheduled Tax Cuts and Jobs Act Business Tax Increases and tax changes including expirations

Does the Optimal Tax System Exist?

While research on optimal taxation often focuses on the pure economic implications, it rarely considers cultural and societal differences that can lead to very different outcomes when trying to implement an optimal tax system.

3 min read
Carbon Taxes in Theory and Practice including US carbon tax case studies with British Columbia Canada carbon tax, UK carbon tax, and Sweden carbon tax revenue recycling reforms

Carbon Taxes in Theory and Practice

In our latest report, we consider several theoretical arguments for carbon taxes and the evidence from carbon taxes implemented around the world related to emissions, economic growth, distribution and revenue recycling options, other environmental taxes, green subsidies, and environmental regulations.

49 min read
unlocking global growth and role of taxation in promoting economic growth Tax Conference

How to Unlock Global Growth: The Role of Taxation

Our recent policy conference brought together academics and political leaders to present research on some of the most pressing issues in global tax policy and to discuss solutions that can unlock genuine global growth.

9 min read
Testimony: The Fiscal State of the Union

Testimony: The Fiscal State of the Union

Federal spending, deficits, and debt are at unsustainable levels. The proposed federal budget is laden with redundant programs, obsolete programs, corporate welfare, and nationalized industries. As Congress begins to craft the FY 2024 federal budget, it needs to establish a process of systematically reviewing programs and priorities.

12 min read
Why dynamic scoring still matters dynamic tax modeling and difference between static and dynamic scoring

Three Reasons Why Dynamic Scoring Still Matters

Lawmakers should use the most comprehensive analytical tools available to them—like dynamic scoring—to make informed decisions about policy changes.

5 min read
UK tax plan Rishi Sunak tax plan

A Tale of Two Tax Plans in the United Kingdom

History is clear. Lowering budget deficits via spending restraint frees resources for additional private output and jobs. Lowering them by raising taxes on business investment and labor services makes it harder to dis-inflate without a recession.

7 min read
2022 state income tax rates and brackets 2022 state individual income tax rates and brackets data map

Marginal Tax Rates and Economic Opportunity

Research has shown that spikes in tax rates can act as barriers to upward mobility. High marginal tax rates might directly influence the decisions workers make about accepting a raise, working additional hours, or whether they might remain on government benefits.

8 min read