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
Tracking the Impact of the Trump Tariffs & Trade War
The Trump tariffs have not meaningfully altered the trade balance and amount to an average tax increase per US household of $900 in 2026.
57 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
126 Results
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
Tracking the Impact of the Trump Tariffs & Trade War
The Trump tariffs have not meaningfully altered the trade balance and amount to an average tax increase per US household of $900 in 2026.
57 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
Can Tax Reform Solve the Debt Problem—or Just Slow It?
This study simulates several large tax increases and consistently finds that even tax increases large enough to close the primary deficit in the near term will lose ground over time and fail to put the debt on a sustainable course.
41 min read
American Compass’s “Tariff Tally” Doesn’t Add Up
The evidence overall paints a far different picture than American Compass presents, and a consistent theoretical framework undercuts its assertions of how tariffs should be expected to impact the economy moving forward.
25 min read
Liberation Day Was One Year Ago: Did the President’s Tariff Promises Happen?
One year after “Liberation Day,” evidence shows President Trump’s tariffs were not reciprocal, did not generate the promised investment boom, raised less revenue than projected, and contributed to higher prices.
7 min read
Pharmaceutical Tariffs Would Add Costs and Reduce Innovation
Thought the Trump administration has not yet imposed new, industry-specific tariffs on drugs or active pharmaceutical ingredients, such tariffs would be a hidden cost on Americans: they would shrink incomes, reduce investment, and lead to less innovation.
7 min read