Research and Development (R&D)

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We are living in an age of hyperbole, or as writer Matthew Hennessey calls it, the “Age of Excusability,” in which our politicians succeed by making outlandish claims. So it goes with the One Big Beautiful Bill, which will usher in a new golden age or send us down the tubes for good, depending on your sources.
Testimony

Testimony: The Impact of the 2025 Reconciliation Law’s Tax Changes on Small Businesses and Lessons for Future Tax Reform

Policymakers should broaden and make permanent full expensing for additional asset classes and pursue structural reforms that reduce distortions in how businesses are taxed. A more consistent and predictable policy environment, paired with targeted improvements to loss treatment, R&D incentives, and compliance burdens, would give small business owners greater confidence to invest, hire, and grow.

Economic Impact of Tariffs, trade tensions, trade, china tariffs
Blog

American Compass’s “Tariff Tally” Doesn’t Add Up

The evidence overall paints a far different picture than American Compass presents, and a consistent theoretical framework undercuts its assertions of how tariffs should be expected to impact the economy moving forward.

25 min read
state full expensing permanent to curb inflation Cost Recovery and Full Expensing
Blog

The OBBBA Improved the Treatment of Investment—but There’s Still Work to Do

The OBBBA significantly boosted economic prospects by improving the treatment of investment. By making key expensing provisions permanent, the OBBBA created better conditions for long-term growth. However, there’s still work to be done, and the OBBBA provided a blueprint for policymakers to follow.

4 min read
2023 corporate tax rates and brackets including corporate income tax data
Blog

Here’s Why Corporate Taxes May Appear Lower After the OBBBA

Near-term corporate tax payments may fall, and financial statement data may appear unusual, but over time, revenues will stabilize, book-tax gaps will fade, and the US tax code will incentivize domestic investment.

8 min read
Big Beautiful Bill Tax Plan and Senate GOP Tax Plan: Details & Analysis of 2025 Trump Tax Cuts
Research

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
European tax trends, EU tax reform
Blog
Europe

Tax Trends in European Countries

As European countries have undertaken a series of tax reforms designed for budgetary stability, policymakers should focus on consumption taxes by making them more neutral and efficient.

15 min read
Podcast

The Big Beautiful Bill’s Impact on State Taxes, Explained

Congress may have passed the One Big Beautiful Bill Act (OBBBA), but state lawmakers now face big choices. Most states link their tax codes to the federal system, meaning OBBBA’s provisions—good and bad—are about to ripple across state budgets.

One Big Beautiful Bill state tax impact including state tax conformity and state tax revenue state tax implications
Research

State Tax Implications of the One Big Beautiful Bill Act

For Congress, work on the One Big Beautiful Bill Act is done. But in state capitols, the work has not yet begun. Many of the tax changes in the federal reconciliation act flow through to state tax codes—automatically in some states, and subject to an update in states’ Internal Revenue Code conformity date in others.

39 min read
OBBBA business expensing state tax codes 2025 One Big Beautiful Bill Business Expensing State Tax Conformity Questions
Blog

The OBBBA Gets Expensing Right. States Should Follow Suit.

However states choose to respond to other tax provisions of the One Big Beautiful Bill Act, they should conform to the pro-growth provisions, which represent a marked improvement in the corporate tax code.

12 min read
The Economic and Distributional Impact of the Trump Administration’s Tariff Actions Economic Impact of Tariffs, trade tensions, trade, Trump china tariffs, trade tensions
Op-eds

Trump’s Next Task Is Turning ‘Beautiful Bill’ Into Economic Boon

The administration has a strong desire to boost manufacturing investment and there are many provisions in the new tax bill that support this aim. But the administration’s erratic trade policy is driving up the costs of key inputs that manufacturers rely on to build things in the US.

patent box regimes in europe, 2025 Intellectual Property IP Tax in EU R&D tax policies data
Data
Europe

Patent Box Regimes in Europe, 2025

The aim of patent boxes is generally to encourage and attract local research and development (R&D) and to incentivize businesses to locate IP in the country. However, patent boxes can introduce another level of complexity to a tax system, and some recent research questions whether patent boxes are actually effective in driving innovation.

4 min read
One Big Beautiful Bill Pros Cons
Blog

The Good, the Bad, and the Ugly in the One Big Beautiful Bill Act

The One Big Beautiful Bill Act makes many of the individual tax cuts and reforms of the TCJA permanent. It improves upon the TCJA by making expensing for R&D and equipment permanent. However, for the most part, it does not include further structural reforms, and instead introduces many new, narrow tax breaks to the code, adding complexity and raising revenue costs.

7 min read