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?
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.
As states grapple with taxing the evolving tobacco and nicotine market, policymakers should carefully consider the tax mix they implement.
European policymakers would be wise to refocus tax and trade policies on what is good for Europe rather than trying to change policies in countries beyond European borders. Meanwhile, the Trump administration would be wise to recognize that the transatlantic relationship is a geoeconomic asset that can be mutually beneficial.
Michigan’s tax code remains too complex, and taxpayers should be asking for a system that bends toward simplicity, not the other way around.
Economic policy in 2025 came with historic highs but also disappointing lows.
Though politically popular, “no tax on tips and overtime” is a short-sighted gimmick that risks derailing West Virginia’s path to prosperity.
The Trump administration has rightly shifted its focus from pursuing legislative changes to implementing new permanent rules. But in this shift, it’s crucial that the White House doesn’t lose focus on the larger task at hand.
One thing remains certain: sending out tariff rebates does not provide a long-term solution for families, but ending the trade war would.
Amidst a government shutdown, healthcare subsidies have metastasized into a major threat to the nation’s fiscal and economic health.
Taxing carbon emissions could leave decisions about reducing greenhouse gases to the market.
Canada has the power to shape its own competitiveness by making itself an attractive destination for investment this 2025 budget season.
The reality is that the US is the winner from globalization, the capital of the world. Let’s keep it that way.
Instead of getting stuck in a reactionary posture, European countries should simply aim for competitiveness, and the EU can support that work with stronger, more stable trade relationships.
President Donald Trump’s fixation on tariffs as a solution for just about everything, including the deficit, has led him to run roughshod over the law and norms of international trade.
The US has a reasonably robust system for containing profit shifting; it is in effect already working towards the Pillar Two goals. Its negotiating posture is in many cases curbing unreasonable sidetracks, not undermining the whole project.
President Trump’s recent decision to replace the commissioner of the Bureau of Labor Statistics has the feeling of replacing the meteorologist and hoping you get better weather. But economic data affect government actions and could have surprising consequences. If nominee E.J. Antoni manipulates the statistics to make Mr. Trump look good, you could end up paying higher taxes.
While the One Big Beautiful Bill Act tries to buoy manufacturing, President Trump’s tariffs are an anvil dragging the sector down.
Though high schools will continue to teach the next generation about civics, English, and math, one critical topic remains missing from many classrooms: taxes.
Michigan voters may soon consider a dramatic change to the state’s income tax.
This past spring, DC taxpayers were sidelined when the Washington Commanders announced that city aid would help fund a new stadium on the site of the vacant RFK Stadium. The $4 billion deal will be offset by a staggering $1.15 billion in public revenue.