About the Taxes and Growth (TAG) Program
The Tax Foundation’s Taxes and Growth Program provides a unique setting where tax professionals and business executives will learn how the different pieces of the U.S. tax code can affect the nuances of the economy.
By working directly with Tax Foundation federal economists and the TAG modeling team, we provide a setting for business professionals to stay up-to-date on ongoing tax modeling projects plus help identify and provide input on potential research and new areas of tax modeling.
What Our TAG Model Can Do
Our TAG model is one of the most advanced and robust tax models being used today. Here are just a few of the things it can do:
- Estimate changes in business tax policy for both C corporations and pass-through businesses
- Show how changes to the corporate income tax rate, the elimination of the corporate Alternative Minimum Tax, and other reforms affect GDP, jobs, wages, and more
- Model changes in the business tax base, such as changes to cost recovery, industry-specific deductions, and tax credits
- Model changes to international tax policy, such as moving to a territorial tax system, the elimination of deferral, and the enactment of a patent box
- Estimate changes in the individual income tax, payroll tax, and estate tax
We’ve Analyzed Most Major Tax Plans Past & Present
The Tax Cuts and Jobs Act
In November of 2017, the House and Senate released their versions of the Tax Cuts and Jobs Act (TCJA). Policymakers wanted our analysis to set the narrative for how the media would report on the plan’s growth potential. Our concluding analysis and scoring of the final TCJA in December found that it would significantly lower the marginal tax rates and the cost of capital. As a result, we found the bill would lead to a 1.7 percent increase in GDP over the long term, 1.5 percent higher wages, and an additional 339,000 full-time equivalent jobs.
The House GOP Tax Reform Blueprint
In June of 2016, the House GOP released a comprehensive tax reform plan. Upon extensively analyzing each aspect of the plan, we found it would: reduce federal tax revenue by $2.4 trillion over the next decade, reduce marginal tax rates on labor, and substantially reduce marginal tax rates on investment. As a result, we estimate that the plan would boost long-run GDP by 9.1 percent, translating into 7.7 percent higher wages and 1.7 million more full-time equivalent jobs. Due to the larger economy and the broader tax base, the plan would reduce revenue on a dynamic basis by only $191 billion over the next decade.
President Trump’s tax plan and 13 other 2016 campaign proposals
Tax policy was a driving topic in the 2016 presidential debates, and 13 of the candidates issued comprehensive tax reform plans. We scored and broke down the 13 candidates’ tax plans to give a side-by-side comparison of the details and economic effects of each candidate’s tax plan.
Dave Camp’s tax reform discussion draft
In May of 2014, we analyzed Camp’s Tax Reform and compared the economic outcomes on jobs, wages, and taxation of capital against four alternative tax plans. When compared to current law, we found that Camp’s plan would slightly raise the GDP by 0.22 percent over ten years, raise taxes on capital by 0.18 percent, and add 486,000 jobs while slightly decreasing pre-tax wages by 0.21 percent.
You can find our entire catalog of research and tax scoring of presidential and past tax plans here.
How Can I Get Involved?
Are you interested in working more closely with Tax Foundation experts to help us:
- Raise the Tax IQ of members of Congress, the Administration, and their staffs
- Keep sound tax policy at the forefront of the national tax reform debate
- Better educate and respond to journalists in today’s fast-paced media environment
- Identify and discuss potential revenue and federal budget concerns
- Strengthen our catalog of up-to-date tax modeling research
- Engage more in the ongoing tax reform debate online and on social media?
This is your opportunity to invest in the future of pro-growth federal tax policy and tax modeling.
Please fill out the form at the link below to learn more about this program.