Will FDII Stay or Will it Go?
While the Biden administration has certainly proposed to remove FDII, it is not clear that Congress is on board with that approach.
5 min read
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Comparing Three Financing Options for President Biden’s Spending Proposals
While Congress continues to debate how to pay for President Biden’s spending proposals in the fiscal year 2022 budget, it is useful to consider the economic impact of a range of financing options in addition to the President’s proposed tax increases.
3 min read
Corporate Tax Revenue Forecasted as Robust following the 2017 Tax Reform
In light of these forecasts, which could be revised upwards further given the pace of growth in the economy and corporate profits, it seems clear that the 2017 tax reform did not substantially reduce the revenue potential of the corporate tax.
3 min read
Intellectual Property Came Back to U.S. after Tax Reform, but Proposals Could Change That
Intellectual property is a key driver in the current economy. Among other things, intellectual property includes patents for life-saving drugs and vaccines and software that runs applications on phones and computers.
5 min read
Dynamic Scoring of Infrastructure Spending Proposals Offsets Small Portion of the Cost
While it is good that policymakers are taking the impact of the economy on tax revenue seriously, it is important to remember that the dynamic effect of increased spending would only offset a small portion of the total spending. In other words, new spending—like tax cuts—rarely pays for itself.
3 min read
How Biden’s Business Tax Proposals Would Impact Taxpayers Across States
The Biden administration has targeted U.S. businesses, including corporations and passthrough entities, to raise revenue to fund new spending. However, individual taxpayers across America will end up footing the bill.
4 min read
Piling on the GILTI Verdicts
The Biden administration has proposed to significantly increase the tax burden on foreign income through a policy known as Global Intangible Low-Tax Income (GILTI). While the administration’s rhetoric focuses on doubling the tax rate on GILTI from 10.5 percent to 21 percent, this is less than half the story.
5 min read
New Research Suggests Estimates of Wealth Inequality Likely Overstated
New research from Federal Reserve Bank of Boston economists suggests wealth inequality has grown less than previously estimated and that shares of wealth held by top earners drops significantly when accounting for sources of lower- and middle-class wealth that are often overlooked.
2 min read
Biden Plan’s Higher Taxation of Businesses Would Boost Collections to Highest in 40-Plus Years
President Biden’s tax proposals released as part of his fiscal year 2022 budget would collect about $2 trillion in new tax revenue from businesses over 10 years. This new revenue would bring income tax collections on businesses as a portion of GDP to its highest level on a sustained basis in over 40 years.
2 min read
Biden’s Tax Proposals Could Impact Small Businesses Over Time
The Biden administration has primarily focused on increasing taxes on top earners to generate revenue to fund its spending priorities. However, these proposals would hit many pass-through businesses and much of pass-through business income, including small businesses, family-owned businesses, and farms.
3 min read
Biden’s Top Marginal Capital Gains Tax Rate Would Be Highest in OECD
President Biden’s proposal to tax capital gains at higher, ordinary income tax rates would lead the U.S. to have the highest top marginal tax rate on capital gains in the OECD.
2 min read
The Impact of the Biden Administration’s Tax Proposals by State and Congressional District
The redistribution of income from the Biden administration’s tax proposals would involve many winners and losers, not only across different types of taxpayers but also geographically across the country. Launch our new interactive map to see average tax changes by state and congressional district over the budget window from 2022 to 2031.
8 min read
Tax Foundation Comment on Treasury’s State Tax Cuts Limitation Rule
The Tax Foundation recently submitted regulatory comment on the U.S. Treasury’s state tax cuts limitation rule, highlighting three areas of concern and suggesting revisions to the rule.
Details and Analysis of President Biden’s FY 2022 Budget Proposals
Explore President Biden budget proposals, including tax and spending in American Jobs Plan and American Families Plan. See Biden tax and spending proposals.
12 min read
Tracking the 2021 Biden Tax Plan and Federal Tax Proposals
Taxes are once again at the forefront of the public policy debate as legislators grapple with how to fund new infrastructure spending, among other priorities. Our tax tracker helps you stay up-to-date as new tax plans emerge from the Biden administration and Congress.
1 min read
Expensing Is Infrastructure, Too
The Biden administration has suggested several tax increases for his infrastructure plan. Public infrastructure can help increase economic growth, but by raising taxes on private investment, the net effect on growth may be negative. However, tax options like retaining expensing for private R&D investment or making 100 percent bonus depreciation for equipment permanent would be complementary to the goals of infrastructure spending.
5 min read
Carve-ins and Carve-outs: Open Questions for Global Tax Reform
There has been some confusion about how some parts of the recent G7 agreement on new tax rules for multinational companies might work. The new policies would target the largest and most profitable multinationals and bring in a global minimum tax.
5 min read
Who Bears the Burden of Corporation Taxation? A Review of Recent Evidence
The Biden administration has pledged to not raise taxes on anyone earning less than $400,000 a year. However, the administration’s corporate tax proposals would likely violate that pledge, given that corporations are comprised of people who also might earn less than $400,000.
3 min read
Infrastructure Funding for Highways Digs into Issues of Outdated Taxes and Narrow Bases
As spending priorities are dividing lawmakers trying to negotiate among the various federal infrastructure plans, less time is being spent on the funding of one of the key components—our highways, both current and future taxes and fees. One of the current taxes, a federal excise tax on heavy commercial vehicles and trailers, is an important revenue generator, but its flawed tax design has a negative impact on investment and leads to unstable revenue.
4 min read
Details and Analysis of President Biden’s American Jobs Plan
Details and analysis of the American Jobs Plan tax proposals. Learn more about the major tax changes in the proposed Biden infrastructure plan.
9 min read