How Would the Ways and Means Proposal Affect Profit Shifting?
If Congress wants to reduce profit shifting, the proposal from the Ways and Means Committee is not an effective tool for this.
7 min read
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Testimony: Joint Economic Committee Hearing on the Revenue Provisions of the Build Back Better Act
Tax Foundation testimony at the Joint Economic Committee hearing on the revenue provisions in the Build Back Better Act and related analysis on their estimated impact.
24 min read
Regional Tax Competition Is Stopping Spain from Becoming Europe’s Tax Hell
Tax competition has proven to be key in keeping tax hikes under control in some regions of Spain as regional governments look to copy Madrid’s tax reforms.
6 min read
Which Industries Would the Tax Hikes Target?
Using Tax Foundation’s Multinational Tax Model, we estimate the effective tax rates on controlled foreign corporation (CFC) profits under current law and under each of the proposed plans for business tax hikes.
9 min read
Placing the House Build Back Better Act Tax Increases in Historical Context
If the spending in the $3.5 trillion budget resolution were financed entirely from tax increases, it would rival as a share of GDP the tax increases used to finance World War II and the Korean War.
3 min read
Florida Lawmakers Should Provide Certainty Around the State’s Corporate Income Tax Rate Reduction
Florida is now the ninth state to implement or adopt a corporate income tax cut in 2021, with the state’s new rate the nation’s second lowest—for now.
6 min read
Federal Policy is Hard
Federal policy is hard. Federal health care policy during reconciliation while governing with razor-thin margins is really, really hard. We break down the debate on Capitol Hill over drug pricing and what the tradeoffs would be of having the federal government set prescription drug prices.
Federal Plastics Tax Is Not a Good Revenue Raiser
One of the Senate’s proposals to pay for the Build Back Better Act is a federal excise tax on virgin plastics, which are plastics that are not reprocessed or recovered.
4 min read
How Heavily Taxed Are U.S. Multinationals?
In general, the effective tax rates on the foreign profits of U.S. multinationals are not that low relative to the U.S. tax rate, contrary to popular rhetoric.
7 min read
Carbon Tax: Weighing the Options for Financing Reconciliation
A carbon tax would be a less economically harmful pay-for than either personal or corporate income tax hikes and a more efficient way to reduce carbon emissions than green energy tax credits, but would come with other trade-offs.
4 min read
History of Attempted Changes to Step-Up in Basis Shows Perilous Road Ahead
As Congress considers President Biden’s proposal to tax unrealized capital gains at death, the history of previous efforts suggests it faces a perilous road ahead. Lawmakers must resolve tricky design and implementation details that derailed past attempts to change how capital gains are treated when assets are passed from one generation to the next.
4 min read
U.S. Corporate Income Faces Third-Highest Integrated Tax Rate in OECD Under Ways and Means Plan
Under the House Ways and Means tax plan, the United States would tax corporate income at the third-highest integrated tax rate among rich nations, averaging 56.6 percent.
3 min read
Federal Judge Rules Against ARPA’s Tax Mandate
Kentucky and Tennessee won an important legal victory Friday when a federal court ruled that the American Rescue Plan Act (ARPA)’s restrictions on state fiscal autonomy were unconstitutional and enjoined (blocked) the enforcement of those provisions against both states.
7 min read
Choose Your Own Adventure: Global Minimum Tax Edition
Over the course of the last year, it has become clear that Democratic lawmakers want to change U.S. international tax rules. However, as proposals have surfaced in recent weeks, there are clear divides among various proposals.
5 min read
Latest White House Report Tells Incomplete Story on Average Tax Rates for Wealthy
The White House Council of Economic Advisors (CEA)’s recent report estimates the average federal individual income tax rate for the top 400 wealthiest households in the U.S to be 8.2 percent, lower than typically estimated for top earners.
4 min read
Reviewing Business Tax Expenditures: Credit Union Tax Exemption
Policymakers should carefully analyze tax expenditures before categorizing one as a loophole—some tax expenditures are important structural elements of the tax code while others are unsound.
14 min read
States Have $95 Billion to Restore their Unemployment Trust Funds—Why Aren’t They Using It?
Given the restrictions on the use of federal relief funding, and the significantly higher tax burdens on employment that will result if trust funds are not replenished, applying federal aid to these trust funds should be an urgent priority.
10 min read