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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The tax bill prioritizes politics over economic growth, writes Daniel Bunn.
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.
Lawmakers should push against efforts to lift the SALT cap, and they should keep an eye toward bringing additional transparency to the tax system.
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.
Attempting to defend Trump’s tariffs, the White House points to studies that show they raise prices, cut manufacturing output, and lead to costly retaliation.
The U.S. Constitution grants authority to Congress to “lay and collect” duties and to “regulate commerce with foreign nations.” But Congress has delegated its powers to set tariffs and negotiate trade to the president. For decades, the executive branch has used those powers to reduce barriers to trade and, sometimes, to impose tariffs in limited fashion.
Compromising on the timing and availability of expensing—or offsetting the revenue losses by worsening other parts of the tax code—would squander an opportunity to craft a fiscally responsible, pro-growth tax reform.
According to a new poll from the Tax Foundation and Public Policy Polling, more than half of taxpayers lack basic tax literacy, regardless of educational attainment, income level, or political affiliation.
If voters are being asked to charge state legislators with raising the equivalent of a doubling of the current income and sales tax, shouldn’t they get to know what the plan is first?
If you want more energy production, taxing producers is the wrong place to start. And if you want to tax companies more if they’re making big profits, the corporate income tax already does that.
As the alcohol industry innovates with newer products like high alcohol content beer or ready-to-drink cocktails, the efficacy of a categorical system continues to break down.
President Donald Trump has decided against a clean extension of the US-Mexico-Canada Agreement (USMCA), allowing the bloc of countries to enter a prolonged period of annual reviews, renegotiations, and, possibly, a shift to bilateral deals.
Voters beware: lower property taxes may sound good, but they come with significant trade-offs.
Europe’s turn toward the UN is ultimately not a sign that governments are ready to resolve fundamental disputes over taxing rights. If anything, international cooperation on the goal that matters most—fair treatment of cross-border trade—is crumbling.
AI may be a transformative technology, but that is not a good justification for throwing core principles of tax policy out the window.
Voters in California this fall will have to determine whether the state will institute a billionaire tax. Advocates of this proposal have been pushing for these kinds of money grabs for decades—and their arguments often run the same. The base is narrow, the lifespan is limited, the cause is sympathetic.
Currently, the European Commission has plans to generate more tax revenue to fund the forthcoming MFF, the long-term budget running from 2028 to 2034. But the truth is, without serious reform, the EU isn’t ready for new taxation.
Revenue-neutral proposals, like many things in politics, have become a relic of the past.
Testifying to Congress, United States Trade Representative Jamieson Greer argued that “President Trump’s trade policy is working.” The data present a different picture: President Trump’s trade agenda is actually holding back the economy.
These debates are often framed in terms of fairness. Raise taxes on a few to provide benefits for most, the thinking goes. But in policy, the more important question should focus on mechanics: will this change achieve its stated goal?
New York City’s proposed “pied-à-terre” tax surcharge on second homes valued at over $5 million would impose higher costs for residents, reduce investment, and dim economic prospects.
For many, the OBBBA made tax filing easier and put more money back into their pockets. But it didn’t improve the grade for overall tax complexity for the US. It may actually make the situation worse.
Smaller corporate tax bills after the OBBBA are not evidence of new giveaways or loopholes. They are evidence the tax code is finally treating investment the way it should.
Gas tax prices are soaring across the country, and lawmakers are naturally looking for ways to alleviate the pain at the pump. While gas tax holidays—which temporarily suspend fuel taxes to artificially lower the price of gas—are a politically welcomed intervention, taxpayers shouldn’t be so quick to celebrate.
As the policy debate for the next presidential election begins to take shape, both sides need to be honest about their plans for addressing the actual challenges our country faces.
By 2036, more than one out of every four dollars raised in total government revenue will go to pay interest on the debt.
Unlike the IEEPA tariffs, which were stopped by the Supreme Court, the new Sec. 122 tariffs require congressional authorization after 150 days.
The side-by-side agreement is an important step in trans-Atlantic economic relations, however, there is more work to be done—on both sides of the Atlantic. If there’s a downside to the side-by-side agreement, it’s the risk of locking in mediocre tax policy choices for the long run.
Alaskan lawmakers are actively debating this session whether they should open their digital borders to the online sports betting market. If legalization is a step Alaska decides to take, the right tax mix could result in notable fiscal advantages for the state.