![mark-to-market definition MTM tax New York Stock Exchange (NYSE) threatens to relocate servers over New Jersey financial transaction tax. Learn more about NJ financial transaction tax proposal.increasing taxes on capital gains, increasing capital gains taxes, increasing capital gains tax](https://taxfoundation.org/wp-content/uploads/2019/08/linkedin-In-Stream_Wide___finance-stock-market-trading-wall-street-financial-e1564765901421-300x158.jpeg)
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![mark-to-market definition MTM tax New York Stock Exchange (NYSE) threatens to relocate servers over New Jersey financial transaction tax. Learn more about NJ financial transaction tax proposal.increasing taxes on capital gains, increasing capital gains taxes, increasing capital gains tax](https://taxfoundation.org/wp-content/uploads/2019/08/linkedin-In-Stream_Wide___finance-stock-market-trading-wall-street-financial-e1564765901421-300x158.jpeg)
![IRS reporting plan to require financial institutions to report inflows and outflows of bank accounts. IRS bank account proposal, IRS bank reporting, IRS audit bank account proposal from Biden Treasury, IRS reporting requirements](https://taxfoundation.org/wp-content/uploads/2021/10/Treasury-DC-e1634740803562-300x200.jpeg)
Proposal for Reporting Requirements for Financial Institutions Misses the Mark
Reducing the tax gap is a good idea, but the reporting requirements for financial institutions could be better-targeted at the problem at hand.
4 min read![Reducing the tax gap Most of the US tax gap comes from the individual income tax. Tax gap, tax enforcement, and tax compliance costs](https://taxfoundation.org/wp-content/uploads/2021/07/Most-the-US-tax-gap-comes-from-the-individual-income-tax.-Tax-gap-tax-enforcement-tax-compliance-300x212.png)
![US drug pricing policies and proposals HR3 drug pricing reform tax](https://taxfoundation.org/wp-content/uploads/2021/09/US-drug-pricing-policies-and-proposals-HR3-tax-proposals-e1631130955999-300x200.jpg)
Don’t Copy European Drug Pricing Policies that Reduced R&D and Innovation
Rather than pursuing policies that have demonstrably reduced R&D and innovation elsewhere, and that would disincentivize R&D in the U.S., lawmakers should continue to ensure an ecosystem that encourages risk-taking and R&D.
4 min read![Compare 2021 patent box regimes in Europe (Patent box Europe data). Explore intellectual property box regimes in the EU Europe, also known as IP regimes in the EU Europe](https://taxfoundation.org/wp-content/uploads/2021/09/Compare-2021-patent-box-regimes-in-Europe-Patent-box-Europe-data.-Explore-intellectual-property-box-regimes-in-the-EU-Europe-also-known-as-IP-regimes-in-the-EU-Europe-285x300.png)
Patent Box Regimes in Europe, 2021
Patent box regimes (also referred to as intellectual property, or IP, regimes) provide lower effective tax rates on income derived from IP. Most commonly, eligible types of IP are patents and software copyrights. Currently, 14 of the 27 EU member states have a patent box regime.
4 min read![Wyden mark-to-market tax proposal. Explore Wyden financial services tax proposals, including Wyden carried interest tax, Wyden derivatives tax, and Wyden hedge funds and private equity tax](https://taxfoundation.org/wp-content/uploads/2021/08/Capitol-CROP-e1631034712985-300x141.jpg)
Wyden’s Financial Services Tax Proposals Would Put “Mark-to-Market” to the Test
Mark-to-market is not simple to implement, as it involves new administrative and compliance challenges for taxpayers. Mark-to-market levies tax on phantom income, requiring some taxpayers to engage in some degree of liquidation, ultimately suppressing incentives to save and invest. The limited tax revenues that could result from these proposals are not worth the risk.
5 min read![temporary tax policies in budget reconciliation, Tax Provisions Expiring After 2025, TCJA expirations](https://taxfoundation.org/wp-content/uploads/2021/08/tax-extenders-tax-expirations-calendar-time-date-e1630345634537-300x200.jpeg)
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.
3 min read![2022 tax filing season IRS backlog federal deductibility Biden increase tax compliance costs and tax enforcement tax gap discussion IRS commissioner](https://taxfoundation.org/wp-content/uploads/2021/08/increasing_tax_compliance_costs_tax_gap_discussion_income_tax_filing_refund_optimized-e1630077994476-300x200.jpeg)
5 Things to Consider in the Tax Gap Discussion
Increasing tax compliance is a major part of the Biden administration proposal to raise revenue for physical and social infrastructure. Reducing the tax gap—the difference between taxes owed and taxes paid—is a good way to raise revenue, but it doesn’t come without trade-offs, and it’s important to go about it in the right way.
3 min read![Biden tax compliance plan to improve IRS funding and tax enforcement to improve tax collection](https://taxfoundation.org/wp-content/uploads/2021/08/Increasing-IRS-tax-enforcement-and-improving-tax-collection.-Learn-more-about-Biden-IRS-enforcement-and-funding-proposals-and-potential-tax-compliance-costs-for-taxpayers-e1629310385172-300x200.jpeg)
Considering Trade-offs to Improving Tax Collections
Recent Biden administration proposals rely heavily on revenue from better IRS tax collections to fund spending initiatives. The American Families Plan uses several avenues to reduce the tax gap (or the difference between taxes paid and taxes owed), from increasing the IRS’s tax enforcement budget to improving information technology and expanding reporting requirements.
4 min read![State Corporate Alternative Minimum Taxes, 2021](https://taxfoundation.org/wp-content/uploads/2021/08/State-Corp-AMT-2021-300x264.png)
![Digital tax debate, Digital taxes around the world, Digital economy taxes](https://taxfoundation.org/wp-content/uploads/2020/04/digital-internet-work-technology-e1587071388784-300x200.jpg)
Striking Right Balance for Cryptocurrency Reporting Requirements in Bipartisan Infrastructure Package
While it makes sense to ensure cryptocurrency transactions are treated similarly to other financial assets, the nature of these requirements as written are potentially unworkable.
3 min read![return-free filing, return-free tax filing 2018 tax data, effects of the Tax Cuts and Jobs Act, 2018 tax return data, federal tax reform impact](https://taxfoundation.org/wp-content/uploads/2019/07/tax-compliance-1040-costs-e1562946587566-300x200.jpeg)
Return-Free Filing: A Better Fit for a Better Tax Code
Return-free filing could reduce compliance costs for many taxpayers, but would only be as good as the system it is administrating.
4 min read![IRS SALT IRS state and local deduction SALT guidance SALT cap workaround charitable deduction SALT workaround](https://taxfoundation.org/wp-content/uploads/2019/06/IRS-e1560289434398-300x200.jpeg)
Simplifying the Tax Code and Reducing the Tax Gap: What Can Be Achieved?
Reducing the tax gap is, on the margin, a good way to raise revenue, but is not without costs. Policymakers should consider compliance costs for law-abiding taxpayers as well as administrative costs for the IRS when evaluating measures to reduce the tax gap.
33 min read![Section 199A pass-through deduction. Securing a Strong Retirement Act of 2020., Bipartisan legislation to encourage retirement savings](https://taxfoundation.org/wp-content/uploads/2020/10/money-retirement-tax-filing-savings-e1604328812163-300x200.jpeg)
Survey Shows Growing Tax Complexity for Multinationals
New data clearly points to an increase in tax complexity for multinationals in the OECD as well as globally. The OECD’s ongoing efforts to reform the international tax system will likely further add complexity to the international tax environment.
3 min read![Surtax definition Nearly half of alternative minimum tax AMT revenue came from three states in 2016](https://taxfoundation.org/wp-content/uploads/2019/04/FF648-04-300x228.png)
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State and Local Tax Structure Has a Critical Impact on Corporate Tax Burdens
While high top tax rates may provide “sticker shock” for corporations looking for a state to call home, they are just one of several important drivers of businesses’ tax burdens and tax compliance costs.
5 min read![Washington State capital gains tax Washington capital gains tax proposal head tax Washington state ballot measures, 2019 Washington state tax voting issues, Washington state tax ballot measures november election 2019](https://taxfoundation.org/wp-content/uploads/2019/10/Seattle-Washington-e1571160112866-300x200.jpg)
![The impact of Biden tax plan by state and congressional district 2021](https://taxfoundation.org/wp-content/uploads/2021/06/The-impact-of-the-Biden-tax-plan-by-state-and-congressinal-district-2021-01-300x258.jpg)
The Impact of the Biden Administration’s Tax Proposals by State and Congressional District
The redistribution of income from the Biden administration’s tax proposals would involve many winners and losers, not only across different types of taxpayers but also geographically across the country. Launch our new interactive map to see average tax changes by state and congressional district over the budget window from 2022 to 2031.
8 min read![Since 2017 tax reform, US corporate tax expenditures are about average in the OECD. Reuters us corporate tax in line with foreign rivals](https://taxfoundation.org/wp-content/uploads/2021/06/global-international-tax-3-300x200.jpg)
U.S. Corporate Tax Expenditures and Effective Tax Rates in Line with OECD Peers
Last week, an analysis by Reuters suggested that U.S. firms pay less income tax than foreign competitors, in part because “the U.S. tax code is unusually generous with tax breaks and deductions,” also known as corporate tax expenditures. However, the Reuters analysis is at odds with other data and studies indicating that U.S. corporate tax expenditures and effective tax rates are about on par with those in peer countries in the OECD.
3 min read![Inflation tax basics inflation definition inflation definition what is inflation what causes inflation tax code US taxes inflation time value of money money and stocks, Capital Gains Indexing for Inflation](https://taxfoundation.org/wp-content/uploads/2018/03/AdobeStock_99799065-e1536081822346-300x198.jpeg)
How the Tax Code Handles Inflation (and How It Doesn’t)
While parts of the U.S. tax code can handle inflation, full expensing of capital investment would be a major improvement along these lines.
5 min read