FAQ: The One Big Beautiful Bill, Explained
Our experts explain how this major tax legislation may affect you and how policymakers can better improve the tax code.
24 min read
Trump Tax Proposals: Details & Analysis
President Trump has proposed a number of tax proposals, including imposing a universal baseline tariff on all US imports, imposing a 60 percent tariff on all US imports from China, making the individual and estate tax cuts of the 2017 Tax Cuts and Jobs Act (TCJA) permanent, maintaining the 21 percent corporate income tax rate, and making all tip income tax-exempt. From analyzing the economic impact of US tariffs and retaliatory actions to the upcoming TCJA expirations, Tax Foundation experts continue to serve as trusted thought leaders, providing research, modeling, analysis, and commentary on how the Trump tax proposals would impact U.S. competitiveness, economic growth, government revenue, and everyday taxpayers. The posts below include our research and analysis on a variety of Trump tax proposals. You can also explore our economic modeling via Options for Reforming America’s Tax Code and our 10 Tax Reforms for Growth and Opportunity. See Trump’s latest trade actions with our Tariff Tracker and explore the latest tax developments and analysis our Budget Reconciliation Tracker.
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Featured Resources
The Good, the Bad, and the Ugly in the One Big Beautiful Bill Act
The One Big Beautiful Bill Act makes many of the individual tax cuts and reforms of the TCJA permanent. It improves upon the TCJA by making expensing for R&D and equipment permanent. However, for the most part, it does not include further structural reforms, and instead introduces many new, narrow tax breaks to the code, adding complexity and raising revenue costs.
7 min read
One Big Beautiful Bill Act Tax Policies: Details and Analysis
Our analysis of the major tax provisions included in the OBBBA finds it will increase long-run GDP by 0.7 percent. The major tax provisions will reduce federal tax revenue by nearly $5.2 trillion between 2025 and 2034, on a conventional basis.
12 min read
Budget Reconciliation: Tracking the 2025 Trump Tax Cuts
President Trump signed the One Big Beautiful Bill Act into law on July 4, 2025.
18 min read
Tax Calculator: How the TCJA’s Expiration Will Affect You
Unless Congress acts, Americans are in for a tax hike in 2026.
3 min read
Donald Trump Tax Plan Ideas: Details and Analysis
We estimate Trump’s proposed tariffs and partial retaliation from all trading partners would together offset more than two-thirds of the long-run economic benefit of his proposed tax cuts.
12 min read
Trump’s “No Tax on Overtime Pay” Proposal Would Distort Work Decisions
Exempting overtime would unnecessarily complicate the tax code, increase compliance and administrative costs, and reduce neutrality by favoring certain work arrangements over others.
5 min read
Frustrated with Tipping? No Tax on Tips Could Make It Worse
“No tax on tips” might be a catchy idea on the campaign trail. But it could create plenty of headaches, from figuring out tips on previously untipped services to an unexpectedly large loss of federal revenue.
6 min read
Trump’s Tariff Proposals Would Raise Tariff Rates to Great Depression-Era Levels
Using tariff policy to reallocate investment and jobs is a costly mistake—that’s a history lesson we should not forget.
6 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
The Unsustainable US Debt Course and Impacts of Potential Tax Changes
Given the poor state of the budget process and worsening debt trajectory, lawmakers should move boldly and quickly to address the issue, including via a fiscal commission process. Issues to consider should include reforms to both spending and taxes.
42 min readAll Related Articles
130 Results
Options Guide Shows the “No Tax On” Deductions Are Costly and Complex
The “no tax on” deductions show the drawbacks of using narrowly tailored provisions to provide tax relief.
6 min read
Power and Tax Policy: When Does Leveraging Market Access as a Coercive Geoeconomic Tool Succeed?
While economic levers like sanctions and tariffs have long been recognized as geoeconomic tools, tax policies have rarely been considered a part of this toolkit.
36 min read
No, Tariffs Can’t Fund $5,000 Dividends to All Adult US Citizens
At the Republican National Convention in Dallas, President Trump promised payments of $5,000 to every adult citizen in the US if the Republicans maintain control of the House and the Senate in the upcoming midterm elections. Vice President JD Vance later supported the idea, saying that the president’s new tariffs are generating a lot of revenue that can be shared with Americans.
3 min read
Exporters Bore Higher Share of the 2025 Tariffs than Previously Estimated, New Research Finds
A new paper finds that foreign exporters absorbed 47 percent of the tariff burden, passing on a smaller share to US importers than estimated by other studies.
6 min read
New Food and Drug Administration Commissioner Should Reform the Center for Tobacco Products
In 2025, the CTP reduced the backlog of premarket tobacco product applications (PMTAs) by about 70 percent. This year, the CTP is already accelerating PMTA reviews further and allowing some leeway for products under review but not yet officially authorized. This is great progress, but much more can be made.
7 min read
Tariff Refunds Have Wiped Out Tariff Revenue Since May
The economic damage from a chaotic tariff regime can outweigh the revenue itself, and unlike the tariffs, it cannot be refunded.
4 min read
How Expensing for Capital Investment Transforms Project Economics: A Case Study Approach
The OBBBA made substantial improvements to cost recovery, but more opportunities remain for policymakers looking to improve the investment climate in the US.
48 min read
There Is No Low-Tax Case for Tariffs
Full expensing under the One Big Beautiful Bill Act does not neutralize the tariff burden on imported goods, as former White House Council of Economic Advisers chair Stephen Miran asserts.
8 min read
Failing to Renew the USMCA Would Increase Tariff Uncertainty and Harm Americans
With nearly 2 million US jobs tied to trade with Canada and Mexico, stalling renewal — or withdrawing outright — would compound tariff uncertainty at exactly the wrong time.
6 min read
Federal Gas Tax Holiday? Suspending the Gas Tax Is a Mistake
In response to surging gas prices, President Trump and several lawmakers have proposed suspending the federal gas tax via a gas tax holiday. Gas tax holidays have appeal across the political aisle, but suspending the federal gas tax is a uniquely ill-suited policy for addressing rising prices.
3 min read