What a Democratic Congress Means for Federal Tax Policy in 2027
With Democrats retaking control of the US House of Representatives and US Senate, several new federal tax issues are on the table for 2027.
7 min read
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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
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
Going Bold: Paul Ryan & Kevin Brady on Tax Reform
Ten years ago, then-Speaker Paul Ryan and Ways and Means Chairman Kevin Brady released the “Better Way” Tax Plan, the blueprint that would eventually become the Tax Cuts and Jobs Act of 2017—the largest overhaul of the US tax code in over 30 years.
What The Washington Post Misses About Social Security’s Progressivity
When properly measured, consistent with how we assess progressivity in tax policy, Social Security benefits are progressive.
5 min read
The Options Guide Shows a Better Way to Fund Social Security
While uncapping the payroll tax and raising individual income tax rates are often the go-to reform options for policymakers, base broadeners like ESI and other fringe benefits are much better alternatives. They can raise significant revenue, while improving the neutrality of the tax code and preventing the need for increases in statutory tax rates.
6 min read
Uncapping the Payroll Tax Would Be the Largest Tax Increase in Decades—and Still Wouldn’t Save Social Security
It is good to see senators talking about the Social Security crisis that is rapidly unfolding. But any serious proposal has to grapple with the trade-offs of different reforms and accept that the fix will come from both sides of the ledger: taxes and expenditures.
5 min read
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
Summary of the Latest Federal Income Tax Data, Tax Year 2023
New IRS data shows the US federal income tax system continues to be progressive as high-income taxpayers pay the highest average income tax rates. Average tax rates for all income groups remain lower after the Tax Cuts and Jobs Act (TCJA).
6 min read
This Tax Season, Ask Where Your Money Is Going
By 2036, more than one out of every four dollars raised in total government revenue will go to pay interest on the debt.
How Does the Additional Senior Deduction Compare to No Tax on Social Security?
The increased senior deduction with the phaseout would deliver a larger tax cut to lower-middle- and middle-income taxpayers compared to exempting all Social Security benefits from income taxation and would not weaken the trust funds as much. But given the temporary nature of the policy, it would increase the deficit-impact of the reconciliation bills without boosting long-run economic growth.
3 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
Sources of Personal Income, Tax Year 2022
As policymakers consider reforms to the individual income tax, understanding the types of income that make up the individual income tax base can help them understand the trade-offs of different changes to the tax system.
8 min read
How Scandinavian Countries Pay for Their Government Spending
Scandinavian countries are well known for their broad social safety nets and their public funding of services such as universal health care, higher education, parental leave, and child and elderly care. High levels of government spending naturally require high levels of taxation. So, how do these countries raise their tax revenues?
7 min read
Financial Ruin? Why Losing IEEPA Tariff Revenue Won’t Change the Long-Term US Fiscal Trajectory
The US fiscal trajectory is on an unsustainable path over the next 35 years, regardless of whether the IEEPA tariffs are struck down or maintained.
3 min read
The Trump Administration is Building a Fiscal House of Cards
President Donald Trump’s fixation on tariffs as a solution for just about everything, including the deficit, has led him to run roughshod over the law and norms of international trade.
One Big Beautiful Bill Act Makes the Individual Income Tax More Complex
While the OBBBA brings some stability by making many of the TCJA’s reforms permanent, it generally fails to reform the tax code’s accumulating complexity.
31 min read
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.
24 min read