“Monetizing” Clean Energy Tax Credits Creates a Sham Market for Bad Policy
Explore IRS clean energy tax credits, including Direct Pay, the IRA and CHIPS Act tax provisions, and Section 1603 grant program. See more.
7 min read
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The U.S. Tax Code Is Too Complex for Direct eFile to Work
It is hard to imagine the IRS Direct e-File Program operating seamlessly with the complexity of the current U.S. tax system. Instead, lawmakers should first address the more fundamental problem that causes taxpayer frustration: our highly complicated tax code.
4 min read
A Tax Reform Plan for Growth and Opportunity: Details & Analysis
This tax reform plan would boost long-run GDP by 2.5%, grow wages by 1.4%, and add 1.3M jobs, all while collecting a similar amount of tax revenue as the current code and reducing the long-run debt burden.
38 min read
Testimony: Reviewing Recent Federal Tax Policies and Considering Pro-Growth Reforms
Lawmakers should focus on simplifying the federal tax code, creating stability, and broadly improving economic incentives. There are incremental steps that can be made on the path to fundamental tax reform.
What Would a Carbon Tariff Achieve?
Sens. Kevin Cramer (R-ND) and Christopher Coons (D-DE) have recently introduced a bill laying the groundwork for a possible solution to the problem: a tax on the carbon content of imports. But it falls short of the optimal approach in several ways.
4 min read
Republican Study Committee’s Tax Plan Simplifies the Tax Code and Offers Pro-Growth Ideas
By extending bonus depreciation and introducing neutral cost recovery, the RSC budget would significantly improve the treatment of investment leading to increased growth, expanded employment, and higher wages.
3 min read
The Real Problem with the IRS
What both parties ignore: The IRS does not need more money for enforcement; it needs fewer things to enforce.
Repealing Inflation Reduction Act’s Energy Credits Would Raise $663 Billion, JCT Projects
The price tag of the Inflation Reduction Act’s green energy tax credits is much higher than originally thought. Among other things, the updated analysis indicates the Inflation Reduction Act does not reduce deficits after all.
6 min read
Why Congress Is More to Blame than IRS for $26 Billion in Refundable Tax Credit Overpayments
Lawmakers should avoid delivering social and economic benefits through the tax code whenever possible and work to simplify or repeal the tax expenditures already in the tax code.
7 min read
R&D Amortization Hurts Economic Growth, Growth Industries, and Small Businesses
The current tax treatment of R&D expenses is irrational, complicated, and counterproductive. Fortunately, fixing this problem is a bipartisan issue.
4 min read
Why Does the UTPR Matter?
As the UTPR is a new concept, it is worth explaining what it is and why Rep. Smith cares about it. In a sentence, the Undertaxed Profits Rule (UTPR) is a looming extraterritorial enforcement mechanism for a tax base the U.S. has not adopted.
6 min read
Expensing of Machinery and Equipment Should Be Made Permanent
Making expensing permanent is especially important now, when the economy is threatened with a recession and inflation remains high.
7 min read
Louisiana Considers Eliminating Corporate Franchise and Inventory Taxes
Legislation currently advancing in Louisiana—related to the franchise tax, inventory tax, and corporate rebate and exemption programs—would make the state’s tax code simpler and more competitive.
4 min read
The Commonwealth’s Case for Corporate Tax Reforms
The Pennsylvania Senate Finance Committee recently advanced two bills, SB 345 and SB 346, that would build on last year’s historic corporate net income tax (CNIT) reform.
7 min read
Testimony: Taxes, Spending, and Addressing the U.S. Debt Crisis
A better-designed tax system should be a goal of any fiscal consolidation package. That said, our simulations suggest that even substantially higher tax increases are insufficient to curtail long-run debt-to-GDP growth.
Design Matters When Raising Taxes to Reduce the Deficit and Stabilize the Debt
Rather than continue down the path of growing debt, lawmakers should craft a comprehensive solution. International experience cautions against tax-based fiscal consolidations, but modest tax increases may be part of a successful debt reduction package.
6 min read
Testimony: U.S. International Tax Policies That Support Investment and Innovation
Even in the face of a global minimum tax, Congress still has a chance to develop a strategic approach in support of U.S. investment and innovation.
The Faulty Revenue Estimate Behind Minnesota’s Consideration of Worldwide Combined Reporting
As Minnesota lawmakers consider making theirs the first state to mandate worldwide combined reporting, they are relying on a revenue estimate that is—this may not be the technical term—completely bogus.
7 min read
The Role of Pro-Growth Tax Policy and Private Investment in the European Union’s Green Transition
Permanent full expensing is an efficient and neutral tax policy that will allow markets to allocate private investment effectively while moving the economy towards the climate goals of the EU.
33 min read