Qualified Business Income Deduction (Sec. 199A)

2026 Tax Brackets

Explore the IRS inflation-adjusted 2026 tax brackets, for which taxpayers will file tax returns in early 2027.

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.

One Big Beautiful Bill Act Tax Policies: Details and Analysis

We estimate the One Big Beautiful Bill Act would increase long-run GDP by 1.2 percent and reduce federal tax revenue by $5 trillion over the next decade on a conventional basis.

How Does the House-Passed Tax Bill Change the Section 199A Pass-Through Deduction?

Rather than permanently expanding a complicated, nonneutral tax break, Congress should prioritize permanence for the most neutral and pro-growth policies like bonus depreciation and R&D expensing.

“One Big Beautiful Bill Act” House GOP Tax Plan: Details and Analysis

Our preliminary analysis finds the tax provisions increase long-run GDP by 0.8 percent and reduce federal tax revenue by $4.0 trillion from 2025 through 2034 on a conventional basis before added interest costs.

SALT Cap Workarounds for Some Pass-Through Entities Are Threatened by One, Big, Beautiful Bill

For owners of pass-through businesses, the reconciliation package (1) raises the state and local tax (SALT) deduction cap, (2) denies the benefit of pass-through entity-level taxes that had previously worked around the SALT cap for such pass-through businesses, and (3) increases the Section 199A deduction for qualifying pass-through entities.

Making the Tax Cuts and Jobs Act Permanent: Economic, Revenue, and Distributional Effects

Permanently extending the Tax Cuts and Jobs Act would boost long-run economic output by 1.1 percent, the capital stock by 0.7 percent, wages by 0.5 percent, and hours worked by 847,000 full-time equivalent jobs.

2025 Tax Brackets

Explore the IRS inflation-adjusted 2025 tax brackets, for which taxpayers will file tax returns in early 2026.

Testimony: Lessons for the 2025 Tax Policy Debate

The stakes for next year’s expiring tax provisions are quite high. If Congress does nothing, then 62 percent of households will see their taxes go up in January of 2026.

How the TCJA Affected Legal Business Forms

The Tax Cuts and Jobs Act (TCJA) significantly lowered the effective tax rates on business income, but the impact was not the same for C corporations and pass-through businesses.

Options for Navigating the 2025 Tax Cuts and Jobs Act Expirations

Policymakers should have two priorities in the upcoming economic policy debates: a larger economy and fiscal responsibility. Principled, pro-growth tax policy can help accomplish both.

Why Are the Individual Tax Cuts Expiring?

The TCJA improved the U.S. tax code, but the meandering voyage of its passing and the compromises made to get it into law show the challenges of the legislative process.

2024 Tax Brackets

Explore the IRS inflation-adjusted 2024 tax brackets, for which taxpayers will file tax returns in early 2025.

Changing Tax Policy Landscape Will Worsen U.S. Competitiveness

Policymakers on Capitol Hill should prioritize permanent pro-growth policy in the coming years as the economy struggles with inflation and the recovery from the pandemic.

2023 Tax Brackets

The IRS recently released the new inflation adjusted 2023 tax brackets and rates. Explore updated credits, deductions, and exemptions, including the standard deduction & personal exemption, Alternative Minimum Tax (AMT), Earned Income Tax Credit (EITC), Child Tax Credit (CTC), capital gains brackets, qualified business income deduction (199A), and the annual exclusion for gifts.

Last-In, First-Out (LIFO)

Capital Allowance

Reviewing Wyden’s Reconciliation Tax Policy Proposals

Congressional lawmakers are putting together a reconciliation bill to enact much of President Biden’s Build Back Better agenda. Many lawmakers including Senate Finance Committee Chair Ron Wyden (D-OR), however, want to make their own mark on the legislation.

Don’t Add More Temporary Tax Policies in Budget Reconciliation

Temporary policy creates uncertainty for taxpayers and scheduling more expirations will add to the already-expiring provisions under the Tax Cuts and Jobs Act (TCJA) of 2017.

Analysis of Sen. Wyden’s Pass-through Deduction Proposal

Sen. Wyden recently introduced the Small Business Tax Fairness Act—the impact of which we modeled—to reform the Section 199A pass-through business deduction created in the Tax Cuts and Jobs Act (TCJA) of 2017. The provision currently allows taxpayers to deduct up to 20 percent of their qualified business income from their taxable income, subject to certain limitations.