Though Tax Hikes Will Be Avoided, the House Bill Misses the Bigger Picture
The tax bill prioritizes politics over economic growth, writes Daniel Bunn.
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Exorbitant Sports Betting Taxes Could Kill the Legal Market
The unique complexities of tax design for sports betting excise taxes make optimal tax design particularly challenging. Any reforms to the federal sports betting tax should ensure that both bettors and operators find legal markets more attractive than illicit markets.
6 min read
House GOP’s Approach to the IRA Clean Energy Tax Credits: Five Things to Know
Tax simplification has two aspects. The first is a code without a mess of targeted provisions for various social policy goals. The second is a code with provisions that are simple and easy to comply with. The bill succeeds at the first, but fails at the second.
7 min read
Washington’s Digital Ad Sales Tax Legislation Is a Legal and Economic Minefield
In Washington, Gov. Ferguson (D) will soon have to act on legislation enacting a far more sweeping tax on Washington-based businesses than lawmakers imagined.
7 min read
A Distributed Profits Tax in Poland
The Polish government is considering converting its traditional corporate income tax into a tax on distributed profits. We estimate that this reform would result in greater investment, a larger productive capital stock, and higher economic output in the long run.
29 min read
States, Congress Need to Hop Off the ‘No Tax on Tips’ Bandwagon
Political popularity isn’t always a reliable gauge of sound policy—and that’s certainly true of President Donald Trump’s idea to eliminate taxes on tips, bonuses, and overtime pay.
The Pro-Growth Minority Must Continue to Stand Up
The Republican party, led by President Trump, has decided that growth is no longer a priority. This is evident in the president’s trade war, the minimal opposition among Republican members of Congress, and the seemingly endless supply of bad policy ideas that will do little to support growth.
Disallowing Business SALT Raises Significant Revenue for Reconciliation but Slows Economic Growth
Pairing permanent TCJA individual tax cuts with new limits on business SALT deductions would shrink the economy, reduce American incomes, and increase the federal budget deficit, undermining the policy goals of TCJA permanence.
3 min read
Even with Exemptions, Tariffs Will Hurt American Energy Production
The Trump administration advocates an “energy dominance” agenda to boost US energy production and lower costs. Its tariff agenda runs directly counter to it.
5 min read
Balls and Strikes on American Manufacturing: What Are the Facts?
Catastrophic rhetoric about US manufacturing is not justified. The tariffs are extremely counterproductive. Still, all is not well in the US manufacturing sector. What should we do?
7 min read
Testimony: A High-Earner Income Tax Surcharge Would Hurt Rhode Island’s Economic Competitiveness
The economic literature overwhelmingly suggests that an income tax increase of this magnitude would negatively affect economic growth and opportunity in Rhode Island.
Improving Tax Treatment of R&D Would Boost Productivity and Growth
As Congress debates expensing and other policies impacting business investment, lawmakers should consider the importance of business investment in research and development (R&D) as a driver for economic growth. Recent studies suggest that the economic benefits of R&D spending are even greater than previously understood.
7 min read
The Tax Code Should Not Be a Game of Hide-and-Seek
Lawmakers should push against efforts to lift the SALT cap, and they should keep an eye toward bringing additional transparency to the tax system.
States Lose When Credit Unions Acquire Banks
A tax preference originally designed to level the playing field now has the opposite effect, creating preferences for one class of financial institutions even though the distinctions between credit unions and banks are increasingly blurred.
6 min read
Fiscal Forum: Future of the EU Tax Mix with Dr. Christoph Spengel
Tax Foundation Europe’s Sean Bray had the opportunity to interview Professor of International Taxation at the University of Mannheim Business School, Christoph Spengel, about the future of the EU tax mix.
15 min read
Taxes Still Affect Economic Growth, Contrary to Findings of Flawed IPS Study
The Institute for Policy Studies (IPS) only succeeds in demonstrating that America has more millionaires than it used to, not that high-tax states are doing well in attracting or retaining them.
7 min read
Tangible Personal Property De Minimis Exemptions by State, 2025
Does your state have a small business exemption for machinery and equipment?
4 min read
Trump Floats Replacing Income Tax with Tariffs: Five Things To Know
President Trump has repeatedly floated the idea of entirely replacing the federal income tax with new tariffs. Recently, he has said that when tariff revenues come in, he will use them to replace or substantially cut income taxes for people making under $200,000.
8 min read
Raising the Top Income Tax Rate Would Offset Economic Benefits of TCJA Individual Permanence
Raising the top income tax rate would raise several hundred billion dollars but would offset most of the pro-growth effects of making the TCJA’s individual tax provisions permanent by reducing incentives to work and invest.
5 min read
North Carolina Should Refine Its Tax Reduction Triggers
By implementing a more sophisticated and nuanced trigger system for its tax reduction goals, North Carolina can sustain its trajectory toward lower tax rates, reinforce its reputation as a business-friendly state, and ensure long-term fiscal stability in an ever-changing economic landscape.
4 min read