Tax Basics

Term of the Month

Cost Recovery

Cost recovery is the ability of businesses to recover (deduct) the costs of their investments. It plays an important role in defining a business’ tax base and can impact investment decisions. When businesses cannot fully deduct capital expenditures, they spend less on capital, which reduces worker’s productivity and wages. 

Read More...

Featured Terms

Pass-through Business

Book Income

Taxable Income

Full Expensing

Wealth Tax

Get Our Beginner's Guide to Tax Policy

New to tax policy? Teaching an introductory course?
Check out our free "Tax Policy 101" toolkit.

Glossary of Terms

Adjusted Gross Income (AGI)

After-Tax Income

Alternative Minimum Tax (AMT)

Apportionment

Average Tax Rate

Base Broadening

Bonus Depreciation

Book Income

Bracket Creep

C Corporation (C corp)

Cadillac Tax

Capital Gains Tax

Carbon Tax

Child Tax Credit (CTC)

Corporate Income Tax (CIT)

Cost Recovery

Depreciation

Double Taxation

Dynamic Scoring

Earned Income Tax Credit (EITC)

Estate Tax

Excise Tax

Full Expensing

Gross Receipts Tax

Individual Income Tax

Inflation Indexing

Inheritance Tax

Internet Sales Tax

Itemized Deduction

Marginal Tax Rate

Marriage Bonus

Marriage Penalty

Mortgage Interest Deduction

Net Operating Loss Carryback

Net Operating Loss Carryforward

Pass-through Business

Pass-Through Business Deduction (Sec. 199A)

Patent Box

Payroll Tax

Pigouvian Tax

Progressive Tax

Property Tax

Refundable Tax Credit

Regressive Tax

Repatriation

S Corporation

Sales Tax

South Dakota v. Wayfair

Standard Deduction

State and Local Tax (SALT) Deduction

Static Scoring

Tariff

Tax Base

Tax Bracket

Tax Credit

Tax Cuts and Jobs Act (TCJA)

Tax Deduction

Tax Exemption

Tax Pyramiding

Tax Refund

Taxable Income

Territorial Tax System

Value-Added Tax (VAT)

Wealth Tax

Withholding

Worldwide Tax System