Taxes and Growth (TAG) Model Overview & Methodology

Three Reasons Why Dynamic Scoring Still Matters

Lawmakers should use the most comprehensive analytical tools available to them—like dynamic scoring—to make informed decisions about policy changes.

Ensuring Tax Rates Don’t Rise with Inflation

If ever there was a paycheck protection program, defending people from bracket creep may be the most important one ever designed.

Recession

Super-Deduction

Last-In, First-Out (LIFO)

Capital Allowance

Measuring Marginal Effective Tax Rates on Capital Income Under Current Law

Decomposing a Dynamic Revenue Estimate

The Right Way to Measure Tax Changes by Income Group

The Tax Foundation’s Taxes and Growth Model

In an attempt to provide a realistic, data-driven analysis of federal tax policy, the Tax Foundation has developed a General Equilibrium Model to simulate the effects of tax policies on the economy and on government revenues and budgets.

Measuring Marginal Tax Rate on Capital Assets

This study demonstrates how Tax Foundation’s TAG model calculates the weighted average METRs for different capital assets in the corporate and noncorporate sectors. The high marginal rates of up to 53 percent in the corporate sector illustrate why there is an urgent need for business tax reform.

Responding to a Critique of the Taxes and Growth Model

Measuring the Cost of Capital and Estate Tax in the Taxes and Growth Model

Regarding Trade Deficits and Cross-Border Investment

Response to Washington Center for Equitable Growth Tax Model Critique

The Tax Foundation is grateful for all constructive feedback on its estimates, and will continue to strive to estimate the economic, revenue, and distributional effects of tax changes with the greatest accuracy possible.

Time to Shoulder Aside “Crowding Out” As an Excuse Not to Do Tax Reform

This paper evaluates the arguments for and against “crowding out” and compares these arguments to empirical studies. It discusses the impact of tax changes on the allocation of national income between consumption and saving, and the allocation of saving between private investment and government deficits. It finds that the crowding out argument is largely based on a mistaken assumption about the flexibility and availability of saving and credit for the financing of government deficits and private investment.

March 2017 Model Update Overview

Comparing the Static and Dynamic Effects of Tax Reform on After-Tax Incomes

October 2016 Model Update Overview

The Tax Foundation’s Model Results in Context