Everything You Need to Know About The Tax Cuts and Jobs Act

In December 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law, representing the most significant tax code overhaul in over three decades. Since then, the Tax Foundation has published a number of valuable resources to help you understand what the Tax Cuts and Jobs Act changed and how exactly your wallet, your state, and the U.S. economy will be impacted. Explore the resources below to see how tax reform will impact you.

Featured Research

Preliminary Details and Analysis of the Tax Cuts and Jobs Act

Tax Plan Calculator

The Impact of the Tax Cuts and Jobs Act by Congressional District

The Distributional Impact of the Tax Cuts and Jobs Act over the Next Decade

Making the Tax Cuts and Jobs Act Individual Income Tax Provisions Permanent

The Benefits of Cutting the Corporate Income Tax Rate

Retail Glitch Awaits Congressional Fix

October 10, 2019

How Many Taxpayers Itemize Under Current Law?

September 12, 2019

New Evidence on the Benefits of Full Expensing

August 15, 2019

Tax Expenditures Taken by Small Businesses in the Federal Tax Code

August 5, 2019

The expenditures offered to small businesses are not created equal. We review the tax expenditures small businesses rely on most.

Tax Treatment of Transportation Fringe Benefits

July 22, 2019

A Preliminary Look at 2018 Tax Data

July 19, 2019

Initial 2018 IRS tax return data shows that the TCJA expanded the use of several credits and deductions, made the standard deduction more favorable than itemizing, reduced tax refunds, and lowered taxes for most Americans.

Are Opportunity Zones Working as Intended?

June 26, 2019

Testimony before the House Ways and Means Select Revenue Measures Subcommittee

June 25, 2019

Watch Nicole Kaeding, Vice President of Federal and Special Projects at the Tax Foundation, testify before the House Ways and Means Select Revenue Measures Subcomittee on the impact of limiting the SALT deduction.

In Defense of the “Church Parking Tax”

June 14, 2019

Measuring Opportunity Zone Success

May 29, 2019

Fixing the TCJA’s Net Operating Losses Provision

May 16, 2019

U.S. Businesses Pay or Remit 93 Percent of All Taxes Collected in America

May 2, 2019

Setting aside the debate over whether a low tax bill is fair, what is missed in such stories is that American businesses are critical to the tax collection system at every level of government—federal, state, and local. Businesses either pay or remit more than 93 percent of all the taxes collected by governments in the U.S. Without businesses as their taxpayers and tax collectors, American governments would not have the resources to provide even the most basic services.

Taxable Income vs. Book Income: Why Some Corporations Pay No Income Tax

May 2, 2019

Why do some companies appear to be profitable but pay little or no federal income taxes? It’s largely due to differences between book and taxable income.

The Lowered Corporate Income Tax Rate Makes the U.S. More Competitive Abroad

May 2, 2019

One of the most significant provisions in the Tax Cuts and Jobs Act was the reduction of the U.S. corporate income tax rate from 35 percent to 21 percent. Over time, the lower corporate rate will encourage new investment and lead to additional economic growth. It will make the U.S. more attractive for companies by increasing after-tax returns on investments and will discourage companies from shifting profits to low-tax jurisdictions.

Anti-Base Erosion Provisions and Territorial Tax Systems in OECD Countries

May 2, 2019

New OECD Data Reveals Decline in U.S. Tax Wedge Is an Outcome of Tax Reform

April 19, 2019

The First Filing Season under the TCJA

April 15, 2019

The TCJA Lowered Taxes for Individuals Throughout Income Groups

March 26, 2019

What’s up with Being GILTI?

March 14, 2019

The Status of State Personal Exemptions a Year After Federal Tax Reform

February 12, 2019

Don’t Judge Your Taxes by Your Refund

January 29, 2019

GILTI Minds: Why Some States Want to Tax International Income—And Why They Shouldn’t

January 28, 2019

Toward a State of Conformity: State Tax Codes a Year After Federal Tax Reform

January 28, 2019

Opportunity Zones: What We Know and What We Don’t

January 8, 2019

Research suggests place-based incentive programs redistribute rather than generate new economic activity, subsidize investments that would have occurred anyway, and displace low-income residents.

Eliminating the SALT Deduction Cap Would Reduce Federal Revenue and Make the Tax Code Less Progressive

January 4, 2019

Tax Expenditures Before and After the Tax Cuts and Jobs Act

December 18, 2018

The Tax Cuts and Jobs Act After A Year

December 17, 2018

The Tax Switch that Could Speed Up December Divorces

December 14, 2018

The TCJA Improved the United States’ International Tax Competitiveness Index Rankings

November 12, 2018

Family Provisions in the New Tax Code

October 31, 2018

The TCJA Cuts Taxes Across Every Income Level and Congressional District

October 30, 2018

Evaluating the Changed Incentives for Repatriating Foreign Earnings

September 27, 2018

Nearly 90 Percent of Taxpayers Are Projected to Take the TCJA’s Expanded Standard Deduction

September 26, 2018

The Tax Cuts and Jobs Act simplified tax filings via an expanded standard deduction, but currently, these individual tax changes are to expire after 2025.

Cost Recovery Treatment Short of Full Expensing Creates A Drag on Economic Growth

September 17, 2018

Full expensing is a key driver of future economic growth, and can have a larger pro-growth effect per dollar of revenue forgone than cutting tax rates.

Who Benefits from Stock Buybacks?

September 19, 2018

This interactive tool breaks down America's top 1,000 investment funds to show who benefits from stock buybacks triggered by the Tax Cuts and Jobs Act.

Testimony: The Positive Economic Growth Effects of the Tax Cuts and Jobs Act

September 6, 2018

Tax Foundation President, Scott Hodge, provides written testimony before the United States Joint Economic Committee on the economic growth effects of TCJA.

Permanence for 100 Percent Bonus Depreciation Provides More Cost-Effective Growth than Permanence for Individual Provisions

September 5, 2018

In the long run, permanent full expensing produces about 4.5 times more GDP growth per dollar of revenue than making individual TCJA provisions permanent.

The TCJA’s Expensing Provision Alleviates the Tax Code’s Bias Against Certain Investments

September 5, 2018

The Tax Cuts and Jobs Act made significant progress in improving businesses’ ability to recover the cost of making investments in the United States by enacting 100 percent bonus depreciation.

Proposed Corporate Rate Hike Would Damage Economic Output

August 23, 2018

Raising the corporate tax rate would reduce economic growth and lead to a smaller capital stock, lower wage growth, and reduced employment.

Reviewing Different Methods of Calculating Tax Compliance Costs

August 21, 2018

Tax compliance creates real costs, which can be calculated. Each method provides unique illustrations of the cost of complying with U.S. tax code.

State Tax Implications of Federal Tax Reform in Virginia

August 14, 2018

Virginia has an opportunity to improve its tax competitiveness following the Tax Cuts and Jobs Act. Inaction will result in higher taxes.

The Benefits of Cutting the Corporate Income Tax Rate

August 14, 2018

The Tax Cuts and Jobs Act reduced the corporate income tax rate from the highest statutory rate in the developed world to a more globally competitive 21 percent.

The Tax Cuts and Jobs Act Simplified the Tax Filing Process for Millions of Households

August 7, 2018

The newly expanded standard deduction will reduce the time taxpayers spend working on Form 1040 by 4 to 7 percent, translating into $3.1 to $5.4 billion saved annually.

The Jobs Impact of the Tax Cuts and Jobs Act by State, 2018-2027

July 30, 2018

The Tax Cuts and Jobs Act (TCJA) is projected to add 215,000 full-time equivalent jobs in 2018 alone, and 1,443,000 cumulative full-time equivalent jobs by 2025. Our new interactive maps shows how many new jobs each state can expect to see each year over the next decade.

Five States Accomplish Meaningful Tax Reform in the Wake of the Tax Cuts and Jobs Act

July 23, 2018

Georgia, Idaho, Iowa, Missouri, and Utah capitalized upon the Tax Cuts and Jobs Act's (TCJA) changes by conforming to increase their annual state revenues.

The Economics of 1986 Tax Reform, and Why It Didn’t Create Growth

July 17, 2018

In contrast, the Tax Cuts and Jobs Act lowered the corporate tax rate and allows immediate and full expensing for the next five years.

Making the Tax Cuts and Jobs Act Individual Income Tax Provisions Permanent

July 10, 2018

If extended, the individual income tax provisions in the Tax Cuts and Jobs Act would increase long-run GDP by 2.2 percent, long-run wages by 0.9 percent, and add 1.5 million new jobs.

The Distributional Impact of the Tax Cuts and Jobs Act over the Next Decade

June 28, 2018

Taxpayers in every income level will receive a tax cut in 2018 and for most of the next decade. See how the size of that tax cut will vary for each income group over the next decade with our new, long-term distributional analysis.

Reforming the Pass-Through Deduction

June 21, 2018

Here's how the new pass-through deduction works and how it can be reformed to be less complex, less prone to abuse, more neutral, and more economically efficient.

The OECD Highlights the Economic Growth Benefits of Full Expensing

June 12, 2018

The Organisation for Economic Co-operation and Development (OECD) praised a measure in the Tax Cuts and Jobs Act (TCJA) passed last December.

New Letter Says the “Retail Glitch” is Discouraging Business Investment

June 11, 2018

Retail groups sent a letter to Congress explaining that the “retail glitch" in the Tax Cuts and Jobs Act would discourage business investment.

The Impact of the Tax Cuts and Jobs Act by Congressional District

June 13, 2018

How will the Tax Cuts and Jobs Act impact taxpayers in your congressional district? This interactive map compares average 2018 tax cuts across the country.

The Fixtures Fix: Correcting the Drafting Error Involving the Expensing of Qualified Improvement Property

May 30, 2018

Due to a legislative oversight, the Tax Cuts and Jobs Act excluded the category of qualified improvement property investment from 100 percent bonus depreciation.

Capital Cost Recovery across the OECD, 2018

May 24, 2018

One hundred percent expensing for short-life business investments was a great start but needs to be enacted on a permanent basis for it to have an impact on long-term decision-making.

Indiana Passes Conformity Bill in One-Day Special Session

May 22, 2018

Indiana recently passed tax conformity legislation linking the state's individual and corporate tax code to the new federal law.

States Can’t Just Hit Pause on Implications of Federal Tax Reform

May 10, 2018

The new federal tax law left states with some important decisions to make. If they delay, their residents could face confusion come filing time.

What’s in the Iowa Tax Reform Package

May 9, 2018

Iowa Gov. Kim Reynolds is on the verge of signing tax reform legislation that would greatly improve the state's needlessly complex tax code.

Minnesota’s Tax Plans Make Modest Improvements

May 2, 2018

In response to the new federal tax law, the governor and lawmakers in both houses have proposed plans for updating Minnesota's tax code.

A Hybrid Approach: The Treatment of Foreign Profits under the Tax Cuts and Jobs Act

May 3, 2018

The Tax Cuts and Jobs Act moved the U.S. toward more of a territorial corporate tax system used by most other OECD countries. However, the U.S. law contains key differences in the treatment of foreign profits.

Business Investment Increases by 39 Percent in Q1 2018

April 27, 2018

Several S&P 500 companies reported an increase in capital expenditures, a possible sign that the Tax Cuts and Jobs Act will help encourage new investment.

Lawmakers May Vote on Making Key Provisions of the TCJA Permanent

April 5, 2018

The Tax Cuts and Jobs Act improved the US tax code, but key provisions are only temporary. Now Congress may vote to ensure those tax breaks are permanent.

Inversions under the New Tax Law

March 13, 2018

The Tax Cuts and Jobs Act was meant to boost growth and deter corporate inversions. What does it mean that an Ohio company is still moving its HQ to the UK?

Tax Reform Isn’t Done

March 8, 2018

Expiring provisions, scheduled tax increases on investment, unresolved issues in the code—The Tax Cuts and Jobs Act was passed, but tax reform isn't done yet.

Maine Tax Conformity Bill a Step Toward Better Policy

March 7, 2018

In the wake of the Tax Cuts and Jobs Act, Maine is considering conformity legislation that would improve the competitiveness of the state's tax code.

Tax Reform Moving Quickly in Georgia

February 23, 2018

In response to federal tax reform, Georgia is poised to reform its own tax code in a way that would make the state more competitive with its neighbors.

State Tax Conformity: Revenue Effects

January 31, 2018

Federal tax reform will have a significant effect on state budgets. This resource, updated often, helps you keep track of the revenue impact in each state.

Tax Compliance Burden Could Cost America as much as 1.2 Percent of its GDP

February 21, 2018

The time and effort associated with tax compliance is a drag on the economy, as researchers have shown. Will the Tax Cuts and Jobs Act reduce that burden?

The United States’ Corporate Income Tax Rate is Now More in Line with Those Levied by Other Major Nations

February 12, 2018

The Tax Cuts and Jobs Act significantly reduced the federal statutory corporate income tax rate. When combined with state and local taxes, it put the U.S.’s corporate tax rate in line with the average among OECD nations.

The ‘Grain Glitch’ Needs to Be Fixed

February 8, 2018

The Tax Cuts and Jobs Act tax preference for farm co-ops would distort agricultural activity and create tax planning opportunities for wealthy taxpayers.

The U.S.’s New Ranking on the International Tax Competitiveness Index

February 5, 2018

The TCJA is projected to improve the United States’ current ranking from 30th among the 35 Organisation for Economic Co-operation and Development (OECD) countries to 25th, an improvement of five places.

Tax Plan Calculator

February 8, 2018

Our tax calculator allows you to compare how the Tax Cuts and Jobs Act and proposals to modify the federal tax code could impact overall tax burdens, take-home pay, credits, deductions, and more.

Trade and Capital Flow Consequences of Tax Reform: A Means to a Faster Expansion of U.S. Capital Formation and Employment

December 21, 2017

The tax bill will boost investment and incomes in the United States, and make the country a better place to locate production and hiring. There will be a transitory rise in the trade deficit, but in the context of a stronger, faster-growing economy.

Does Your State’s Corporate Income Tax Code Conform with the Federal Tax Code?

December 20, 2017

Whether your state's corporate income tax code conforms to the federal corporate income tax code matters a great deal for how the Tax Cuts and Jobs Act will impact revenue in your state.

Pass-Through Deduction Won’t Flow Through to Most States

December 19, 2017

For policymakers in most states, the fact that the pass-through deduction doesn’t affect AGI should come as a relief. For those in the six states which use federal taxable income as their starting point for conformity, decoupling from the provision is an entirely viable option.

Who Gets a Tax Cut Under the Tax Cuts and Jobs Act?

December 19, 2017

How would the Tax Cuts and Jobs Act impact different households? Check out our sample taxpayers to see what would change if the bill is enacted.

Preliminary Details and Analysis of the Tax Cuts and Jobs Act

December 18, 2017

According to the Tax Foundation’s Taxes and Growth Model, the Tax Cuts and Jobs Act would lead to a 1.7 percent increase in GDP over the long term, 1.5 percent higher wages, an additional 339,000 full-time equivalent jobs, and cost $1.47 trillion on a static basis and by $448 billion on a dynamic basis.

How Many Taxpayers Itemize Under Current Law?

September 12, 2019

Tax Treatment of Transportation Fringe Benefits

July 22, 2019

A Preliminary Look at 2018 Tax Data

July 19, 2019

Initial 2018 IRS tax return data shows that the TCJA expanded the use of several credits and deductions, made the standard deduction more favorable than itemizing, reduced tax refunds, and lowered taxes for most Americans.

Are Opportunity Zones Working as Intended?

June 26, 2019

Testimony before the House Ways and Means Select Revenue Measures Subcommittee

June 25, 2019

Watch Nicole Kaeding, Vice President of Federal and Special Projects at the Tax Foundation, testify before the House Ways and Means Select Revenue Measures Subcomittee on the impact of limiting the SALT deduction.

Measuring Opportunity Zone Success

May 29, 2019

New OECD Data Reveals Decline in U.S. Tax Wedge Is an Outcome of Tax Reform

April 19, 2019

The First Filing Season under the TCJA

April 15, 2019

The TCJA Lowered Taxes for Individuals Throughout Income Groups

March 26, 2019

The Status of State Personal Exemptions a Year After Federal Tax Reform

February 12, 2019

Don’t Judge Your Taxes by Your Refund

January 29, 2019

Eliminating the SALT Deduction Cap Would Reduce Federal Revenue and Make the Tax Code Less Progressive

January 4, 2019

Tax Expenditures Before and After the Tax Cuts and Jobs Act

December 18, 2018

The Tax Cuts and Jobs Act After A Year

December 17, 2018

The Tax Switch that Could Speed Up December Divorces

December 14, 2018

Family Provisions in the New Tax Code

October 31, 2018

The TCJA Cuts Taxes Across Every Income Level and Congressional District

October 30, 2018

Nearly 90 Percent of Taxpayers Are Projected to Take the TCJA’s Expanded Standard Deduction

September 26, 2018

The Tax Cuts and Jobs Act simplified tax filings via an expanded standard deduction, but currently, these individual tax changes are to expire after 2025.

Reviewing Different Methods of Calculating Tax Compliance Costs

August 21, 2018

Tax compliance creates real costs, which can be calculated. Each method provides unique illustrations of the cost of complying with U.S. tax code.

The Tax Cuts and Jobs Act Simplified the Tax Filing Process for Millions of Households

August 7, 2018

The newly expanded standard deduction will reduce the time taxpayers spend working on Form 1040 by 4 to 7 percent, translating into $3.1 to $5.4 billion saved annually.

Making the Tax Cuts and Jobs Act Individual Income Tax Provisions Permanent

July 10, 2018

If extended, the individual income tax provisions in the Tax Cuts and Jobs Act would increase long-run GDP by 2.2 percent, long-run wages by 0.9 percent, and add 1.5 million new jobs.

The Distributional Impact of the Tax Cuts and Jobs Act over the Next Decade

June 28, 2018

Taxpayers in every income level will receive a tax cut in 2018 and for most of the next decade. See how the size of that tax cut will vary for each income group over the next decade with our new, long-term distributional analysis.

The Impact of the Tax Cuts and Jobs Act by Congressional District

June 13, 2018

How will the Tax Cuts and Jobs Act impact taxpayers in your congressional district? This interactive map compares average 2018 tax cuts across the country.

Tax Reform Isn’t Done

March 8, 2018

Expiring provisions, scheduled tax increases on investment, unresolved issues in the code—The Tax Cuts and Jobs Act was passed, but tax reform isn't done yet.

Tax Compliance Burden Could Cost America as much as 1.2 Percent of its GDP

February 21, 2018

The time and effort associated with tax compliance is a drag on the economy, as researchers have shown. Will the Tax Cuts and Jobs Act reduce that burden?

Tax Plan Calculator

February 8, 2018

Our tax calculator allows you to compare how the Tax Cuts and Jobs Act and proposals to modify the federal tax code could impact overall tax burdens, take-home pay, credits, deductions, and more.

Who Gets a Tax Cut Under the Tax Cuts and Jobs Act?

December 19, 2017

How would the Tax Cuts and Jobs Act impact different households? Check out our sample taxpayers to see what would change if the bill is enacted.

Preliminary Details and Analysis of the Tax Cuts and Jobs Act

December 18, 2017

According to the Tax Foundation’s Taxes and Growth Model, the Tax Cuts and Jobs Act would lead to a 1.7 percent increase in GDP over the long term, 1.5 percent higher wages, an additional 339,000 full-time equivalent jobs, and cost $1.47 trillion on a static basis and by $448 billion on a dynamic basis.

Retail Glitch Awaits Congressional Fix

October 10, 2019

Tax Expenditures Taken by Small Businesses in the Federal Tax Code

August 5, 2019

The expenditures offered to small businesses are not created equal. We review the tax expenditures small businesses rely on most.

Tax Treatment of Transportation Fringe Benefits

July 22, 2019

In Defense of the “Church Parking Tax”

June 14, 2019

Fixing the TCJA’s Net Operating Losses Provision

May 16, 2019

U.S. Businesses Pay or Remit 93 Percent of All Taxes Collected in America

May 2, 2019

Setting aside the debate over whether a low tax bill is fair, what is missed in such stories is that American businesses are critical to the tax collection system at every level of government—federal, state, and local. Businesses either pay or remit more than 93 percent of all the taxes collected by governments in the U.S. Without businesses as their taxpayers and tax collectors, American governments would not have the resources to provide even the most basic services.

Taxable Income vs. Book Income: Why Some Corporations Pay No Income Tax

May 2, 2019

Why do some companies appear to be profitable but pay little or no federal income taxes? It’s largely due to differences between book and taxable income.

The Lowered Corporate Income Tax Rate Makes the U.S. More Competitive Abroad

May 2, 2019

One of the most significant provisions in the Tax Cuts and Jobs Act was the reduction of the U.S. corporate income tax rate from 35 percent to 21 percent. Over time, the lower corporate rate will encourage new investment and lead to additional economic growth. It will make the U.S. more attractive for companies by increasing after-tax returns on investments and will discourage companies from shifting profits to low-tax jurisdictions.

Anti-Base Erosion Provisions and Territorial Tax Systems in OECD Countries

May 2, 2019

What’s up with Being GILTI?

March 14, 2019

GILTI Minds: Why Some States Want to Tax International Income—And Why They Shouldn’t

January 28, 2019

Opportunity Zones: What We Know and What We Don’t

January 8, 2019

Research suggests place-based incentive programs redistribute rather than generate new economic activity, subsidize investments that would have occurred anyway, and displace low-income residents.

The Tax Cuts and Jobs Act After A Year

December 17, 2018

The TCJA Improved the United States’ International Tax Competitiveness Index Rankings

November 12, 2018

Evaluating the Changed Incentives for Repatriating Foreign Earnings

September 27, 2018

Permanence for 100 Percent Bonus Depreciation Provides More Cost-Effective Growth than Permanence for Individual Provisions

September 5, 2018

In the long run, permanent full expensing produces about 4.5 times more GDP growth per dollar of revenue than making individual TCJA provisions permanent.

The TCJA’s Expensing Provision Alleviates the Tax Code’s Bias Against Certain Investments

September 5, 2018

The Tax Cuts and Jobs Act made significant progress in improving businesses’ ability to recover the cost of making investments in the United States by enacting 100 percent bonus depreciation.

Proposed Corporate Rate Hike Would Damage Economic Output

August 23, 2018

Raising the corporate tax rate would reduce economic growth and lead to a smaller capital stock, lower wage growth, and reduced employment.

The Benefits of Cutting the Corporate Income Tax Rate

August 14, 2018

The Tax Cuts and Jobs Act reduced the corporate income tax rate from the highest statutory rate in the developed world to a more globally competitive 21 percent.

The Economics of 1986 Tax Reform, and Why It Didn’t Create Growth

July 17, 2018

In contrast, the Tax Cuts and Jobs Act lowered the corporate tax rate and allows immediate and full expensing for the next five years.

Reforming the Pass-Through Deduction

June 21, 2018

Here's how the new pass-through deduction works and how it can be reformed to be less complex, less prone to abuse, more neutral, and more economically efficient.

The OECD Highlights the Economic Growth Benefits of Full Expensing

June 12, 2018

The Organisation for Economic Co-operation and Development (OECD) praised a measure in the Tax Cuts and Jobs Act (TCJA) passed last December.

New Letter Says the “Retail Glitch” is Discouraging Business Investment

June 11, 2018

Retail groups sent a letter to Congress explaining that the “retail glitch" in the Tax Cuts and Jobs Act would discourage business investment.

The Fixtures Fix: Correcting the Drafting Error Involving the Expensing of Qualified Improvement Property

May 30, 2018

Due to a legislative oversight, the Tax Cuts and Jobs Act excluded the category of qualified improvement property investment from 100 percent bonus depreciation.

A Hybrid Approach: The Treatment of Foreign Profits under the Tax Cuts and Jobs Act

May 3, 2018

The Tax Cuts and Jobs Act moved the U.S. toward more of a territorial corporate tax system used by most other OECD countries. However, the U.S. law contains key differences in the treatment of foreign profits.

Business Investment Increases by 39 Percent in Q1 2018

April 27, 2018

Several S&P 500 companies reported an increase in capital expenditures, a possible sign that the Tax Cuts and Jobs Act will help encourage new investment.

Inversions under the New Tax Law

March 13, 2018

The Tax Cuts and Jobs Act was meant to boost growth and deter corporate inversions. What does it mean that an Ohio company is still moving its HQ to the UK?

Tax Reform Isn’t Done

March 8, 2018

Expiring provisions, scheduled tax increases on investment, unresolved issues in the code—The Tax Cuts and Jobs Act was passed, but tax reform isn't done yet.

The United States’ Corporate Income Tax Rate is Now More in Line with Those Levied by Other Major Nations

February 12, 2018

The Tax Cuts and Jobs Act significantly reduced the federal statutory corporate income tax rate. When combined with state and local taxes, it put the U.S.’s corporate tax rate in line with the average among OECD nations.

The ‘Grain Glitch’ Needs to Be Fixed

February 8, 2018

The Tax Cuts and Jobs Act tax preference for farm co-ops would distort agricultural activity and create tax planning opportunities for wealthy taxpayers.

The U.S.’s New Ranking on the International Tax Competitiveness Index

February 5, 2018

The TCJA is projected to improve the United States’ current ranking from 30th among the 35 Organisation for Economic Co-operation and Development (OECD) countries to 25th, an improvement of five places.

Trade and Capital Flow Consequences of Tax Reform: A Means to a Faster Expansion of U.S. Capital Formation and Employment

December 21, 2017

The tax bill will boost investment and incomes in the United States, and make the country a better place to locate production and hiring. There will be a transitory rise in the trade deficit, but in the context of a stronger, faster-growing economy.

Does Your State’s Corporate Income Tax Code Conform with the Federal Tax Code?

December 20, 2017

Whether your state's corporate income tax code conforms to the federal corporate income tax code matters a great deal for how the Tax Cuts and Jobs Act will impact revenue in your state.

Pass-Through Deduction Won’t Flow Through to Most States

December 19, 2017

For policymakers in most states, the fact that the pass-through deduction doesn’t affect AGI should come as a relief. For those in the six states which use federal taxable income as their starting point for conformity, decoupling from the provision is an entirely viable option.

Preliminary Details and Analysis of the Tax Cuts and Jobs Act

December 18, 2017

According to the Tax Foundation’s Taxes and Growth Model, the Tax Cuts and Jobs Act would lead to a 1.7 percent increase in GDP over the long term, 1.5 percent higher wages, an additional 339,000 full-time equivalent jobs, and cost $1.47 trillion on a static basis and by $448 billion on a dynamic basis.

Retail Glitch Awaits Congressional Fix

October 10, 2019

New Evidence on the Benefits of Full Expensing

August 15, 2019

Taxable Income vs. Book Income: Why Some Corporations Pay No Income Tax

May 2, 2019

Why do some companies appear to be profitable but pay little or no federal income taxes? It’s largely due to differences between book and taxable income.

The TCJA Improved the United States’ International Tax Competitiveness Index Rankings

November 12, 2018

Cost Recovery Treatment Short of Full Expensing Creates A Drag on Economic Growth

September 17, 2018

Full expensing is a key driver of future economic growth, and can have a larger pro-growth effect per dollar of revenue forgone than cutting tax rates.

Testimony: The Positive Economic Growth Effects of the Tax Cuts and Jobs Act

September 6, 2018

Tax Foundation President, Scott Hodge, provides written testimony before the United States Joint Economic Committee on the economic growth effects of TCJA.

Permanence for 100 Percent Bonus Depreciation Provides More Cost-Effective Growth than Permanence for Individual Provisions

September 5, 2018

In the long run, permanent full expensing produces about 4.5 times more GDP growth per dollar of revenue than making individual TCJA provisions permanent.

The TCJA’s Expensing Provision Alleviates the Tax Code’s Bias Against Certain Investments

September 5, 2018

The Tax Cuts and Jobs Act made significant progress in improving businesses’ ability to recover the cost of making investments in the United States by enacting 100 percent bonus depreciation.

The OECD Highlights the Economic Growth Benefits of Full Expensing

June 12, 2018

The Organisation for Economic Co-operation and Development (OECD) praised a measure in the Tax Cuts and Jobs Act (TCJA) passed last December.

The Fixtures Fix: Correcting the Drafting Error Involving the Expensing of Qualified Improvement Property

May 30, 2018

Due to a legislative oversight, the Tax Cuts and Jobs Act excluded the category of qualified improvement property investment from 100 percent bonus depreciation.

Capital Cost Recovery across the OECD, 2018

May 24, 2018

One hundred percent expensing for short-life business investments was a great start but needs to be enacted on a permanent basis for it to have an impact on long-term decision-making.

Lawmakers May Vote on Making Key Provisions of the TCJA Permanent

April 5, 2018

The Tax Cuts and Jobs Act improved the US tax code, but key provisions are only temporary. Now Congress may vote to ensure those tax breaks are permanent.

GILTI Minds: Why Some States Want to Tax International Income—And Why They Shouldn’t

January 28, 2019

Toward a State of Conformity: State Tax Codes a Year After Federal Tax Reform

January 28, 2019

State Tax Implications of Federal Tax Reform in Virginia

August 14, 2018

Virginia has an opportunity to improve its tax competitiveness following the Tax Cuts and Jobs Act. Inaction will result in higher taxes.

The Jobs Impact of the Tax Cuts and Jobs Act by State, 2018-2027

July 30, 2018

The Tax Cuts and Jobs Act (TCJA) is projected to add 215,000 full-time equivalent jobs in 2018 alone, and 1,443,000 cumulative full-time equivalent jobs by 2025. Our new interactive maps shows how many new jobs each state can expect to see each year over the next decade.

Five States Accomplish Meaningful Tax Reform in the Wake of the Tax Cuts and Jobs Act

July 23, 2018

Georgia, Idaho, Iowa, Missouri, and Utah capitalized upon the Tax Cuts and Jobs Act's (TCJA) changes by conforming to increase their annual state revenues.

The Impact of the Tax Cuts and Jobs Act by Congressional District

June 13, 2018

How will the Tax Cuts and Jobs Act impact taxpayers in your congressional district? This interactive map compares average 2018 tax cuts across the country.

Indiana Passes Conformity Bill in One-Day Special Session

May 22, 2018

Indiana recently passed tax conformity legislation linking the state's individual and corporate tax code to the new federal law.

States Can’t Just Hit Pause on Implications of Federal Tax Reform

May 10, 2018

The new federal tax law left states with some important decisions to make. If they delay, their residents could face confusion come filing time.

What’s in the Iowa Tax Reform Package

May 9, 2018

Iowa Gov. Kim Reynolds is on the verge of signing tax reform legislation that would greatly improve the state's needlessly complex tax code.

Minnesota’s Tax Plans Make Modest Improvements

May 2, 2018

In response to the new federal tax law, the governor and lawmakers in both houses have proposed plans for updating Minnesota's tax code.

Maine Tax Conformity Bill a Step Toward Better Policy

March 7, 2018

In the wake of the Tax Cuts and Jobs Act, Maine is considering conformity legislation that would improve the competitiveness of the state's tax code.

Tax Reform Moving Quickly in Georgia

February 23, 2018

In response to federal tax reform, Georgia is poised to reform its own tax code in a way that would make the state more competitive with its neighbors.

State Tax Conformity: Revenue Effects

January 31, 2018

Federal tax reform will have a significant effect on state budgets. This resource, updated often, helps you keep track of the revenue impact in each state.

Who Benefits from Stock Buybacks?

September 19, 2018

This interactive tool breaks down America's top 1,000 investment funds to show who benefits from stock buybacks triggered by the Tax Cuts and Jobs Act.

The Jobs Impact of the Tax Cuts and Jobs Act by State, 2018-2027

July 30, 2018

The Tax Cuts and Jobs Act (TCJA) is projected to add 215,000 full-time equivalent jobs in 2018 alone, and 1,443,000 cumulative full-time equivalent jobs by 2025. Our new interactive maps shows how many new jobs each state can expect to see each year over the next decade.

The Impact of the Tax Cuts and Jobs Act by Congressional District

June 13, 2018

How will the Tax Cuts and Jobs Act impact taxpayers in your congressional district? This interactive map compares average 2018 tax cuts across the country.

Tax Plan Calculator

February 8, 2018

Our tax calculator allows you to compare how the Tax Cuts and Jobs Act and proposals to modify the federal tax code could impact overall tax burdens, take-home pay, credits, deductions, and more.