The mission of our federal program is to promote tax and fiscal policy that leads to greater U.S. competitiveness, higher economic growth, and improved quality of life for all taxpayers.
We have several projects, such as the Center for Economic Analysis, that help us educate taxpayers, journalists, and policymakers on how the U.S. tax system works and the impact of federal tax changes on taxpayers and the economy.
Since 2015, our Center for Economic Analysis has used our Taxes and Growth (TAG) macroeconomic model to analyze dozens of legislative and campaign tax proposals, including every major tax plan put forth during the 2016 presidential campaigns, the House GOP’s 2016 Tax Reform Blueprint, the Tax Cuts and Jobs Act, and President Biden’s tax reform agenda.
For a look at where tax modeling started, explore the extensive body of work from the Institute for Research on the Economics of Taxation (IRET), the think tank that pioneered dynamic tax modeling. Explore the IRET Archives
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Tax Modeling | Cost Recovery | Taxes & Inflation | Taxes on Savers & Investors | Tariffs & Trade | Carbon Taxes
The federal tax code remains a major source of frustration and controversy for Americans, and a hindrance to economic growth and opportunity. Other countries, such as Estonia, have proven that sufficient tax revenue can be collected in a less frustrating and more efficient way.
A robust collection of 70 potential US tax reform changes and US tax reform options for reforming the tax code. See the comprehensive tax reform guide.
The IRS recently released the new inflation adjusted 2023 tax brackets and rates. Explore updated credits, deductions, and exemptions, including the standard deduction & personal exemption, Alternative Minimum Tax (AMT), Earned Income Tax Credit (EITC), Child Tax Credit (CTC), capital gains brackets, qualified business income deduction (199A), and the annual exclusion for gifts.
The latest IRS data shows that the U.S. federal individual income tax continued to be progressive, borne primarily by the highest income earners.
The Trump administration imposed nearly $80 billion worth of new taxes on Americans by levying tariffs on thousands of products, amounting to one of the largest tax increases in decades. The Biden administration has so far kept most of the Trump administration tariffs in place.
Different taxes have different economic effects, so policymakers should always consider how tax revenue is raised and not just how much is raised.
A growing international tax agreement known as Pillar Two presents two new threats to the U.S. tax base: potential lost revenue and limitations on Congress’s ability to set its own tax policy.
Congress should reconsider key elements of the IRA, including the book minimum tax and the green energy credits, with an eye towards simplification and fiscal responsibility.
Even in the face of a global minimum tax, Congress still has a chance to develop a strategic approach in support of U.S. investment and innovation.
Repealing LIFO, as some policymakers have proposed, is not sound policy. LIFO helps firms avoid the penalty on inventory investment created by FIFO and is neither a targeted tax break nor a subsidy (as some opponents suggest).
The Section 232 tariffs on imports of steel and aluminum raised the cost of production for manufacturers, reducing employment in those industries, raising prices for consumers, and hurting exports.
The phaseout of 100 percent bonus depreciation, scheduled to take place after the end of 2022, will increase the after-tax cost of investment in the U.S. Permanently extending it would increase long-run economic output by 0.4 percent and increase employment by 73,000 FTE jobs.
How will the Inflation Reduction Act taxes impact inflation, economic growth, tax revenue, and everyday taxpayers? See Inflation Reduction Act tax changes.
Congress should prioritize evaluation of recent international tax trends and the model rules and adjust U.S. rules in a way that supports investment and innovation and moves towards simplicity.
Our new analysis reviews the basic structure of carbon taxes, how they compare to the existing set of climate policies, and how they could fit into various pro-growth tax reform packages.