What Is the US Debt Limit and Why Does It Matter?
The debt limit is one of Congress’s few chances to debate unsustainable borrowing, and reforms should create more room for bipartisan deficit reduction, not less.
6 min read
All Related Articles
Could an Employer Compensation Tax Save Social Security?
With Social Security insolvency rapidly approaching and policymakers exploring changes to benefits and taxation, Congress could look to base-broadening reforms like the ECT as a guide for how to think about taxing compensation and broadening the tax base.
4 min read
Why the US Needs a Fiscal Commission to Help Solve the Debt Crisis
The federal government’s debt burden and interest on the debt are near record levels and headed higher, raising legitimate concerns about an eventual debt crisis. Given the increasingly dysfunctional budget process, the most viable option on the table to stave off such a crisis is a statutory bipartisan fiscal commission with buy-in from leaders of both parties.
6 min read
A Small Value-Added Tax Could Pay for Tariff Repeal
Rather than continuing the Trump administration’s tariff policy, policymakers should explore new solutions that can raise sustainable revenue with fewer distortions, like replacing the tariffs with a value-added tax.
5 min read
The Spiraling Cost of Federal Healthcare Subsidies and Carveouts
The US federal government faces several fiscal challenges in the coming decades, including the growing burden of federal healthcare programs and tax preferences.
14 min read
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
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
Teachers Are Omitting a Big Part of Financial Literacy
Most Americans don’t understand how the tax code works. According to a poll conducted by TaxEDU, a majority of respondents do not have a basic understanding of common tax concepts.
What Five Revenue Raisers in the Options Guide Tell Us About Sound Tax Reform
Tax Foundation’s new resource, Options for Reforming America’s Tax Code 3.0, demonstrates that not all revenue-raising options are created equal—some do more harm to the economy than others for the same amount of revenue.
7 min read
Remembering Bill Archer
His dedication to principles, his championing of bipartisanship and fiscal responsibility, and most importantly his commitment to helping the next generation leaves not just our organization in a stronger place, but our entire nation.
3 min read
Blog
Short FormWhat 250 Years of Tax History Reveal About the US Tax Code
Just as many parts of American life have transformed over the past 250 years, so too has the federal tax system. While most taxes levied in the 18th century are still levied in some form today, the federal government’s reliance on them, the complexity of the tax code, and Americans’ overall tax burdens have shifted considerably.
5 min read
Will the AI Apocalypse Come for the Tax Code?
AI may be a transformative technology, but that is not a good justification for throwing core principles of tax policy out the window.
The Abandoned Goal of Revenue Neutrality
Revenue-neutral proposals, like many things in politics, have become a relic of the past.
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
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
The Federal Payroll Tax: A Primer
With changes to payroll taxes likely to be part of a toolkit for reform, both policymakers and the public would benefit from understanding how the payroll tax works, who pays it, and its impact on the economy.
21 min read
Yes, You’re Getting a Bigger Tax Refund. But That’s Not the Whole Story.
Economic policy in 2025 came with historic highs but also disappointing lows.
Will the OBBBA Tax Cuts Grow the US Economy?
Over the long run, OBBBA’s permanent extension of lower marginal tax rates on work, saving, and investment lays a solid foundation for stronger economic growth.
6 min read
How Does the OBBBA Impact Debt, Deficits, and Tax Revenue?
Our modeling indicates the One Big Beautiful Bill Act (OBBBA) will boost economic growth but increase deficits, leading to record high debt in 2028 that rises to 124 percent of GDP by 2034.
7 min read
How to Refuel the Highway Trust Fund
Examples from other countries and US states show that well-designed user fees can fund transportation infrastructure effectively.
19 min read