Tax Rate vs. Tax Base
When thinking about taxes, we often consider the tax rate—or what percentage of something is taxed. But there is another factor in considering taxes: the tax base.
All Related Articles
Maryland Court Strikes Down Digital Ad Tax
The Maryland Tax Court has struck down the state’s digital advertising tax and ordered that refunds be paid to taxpayers for five and a half years’ worth of collections under the unconstitutional tax.
5 min read
Good Tax Reform Starts with Good Process
In June, the Dominican Republic rushed through a package of tax legislation in seven days. International examples demonstrate that consultation, transparency, and clarity are key factors for successful tax reform.
5 min read
New Congressional Data Center Tax Proposals Threaten US AI Investment
US policymakers have put forward two new tax proposals to address concerns about how artificial intelligence (AI) will impact land, energy, and the workforce.
7 min read
From Temporary to Permanent Full Expensing: Strengthening Canada’s Investment Climate
If Canada doesn’t make these provisions permanent, it will drop to 12th place in the capital cost recovery ranking once provisions expire in 2034.
5 min read
How Tax Cliffs Hold Back Poland’s Individual Business Owners
Poland taxes its individual business owners through alternative regimes and a series of thresholds, several of them sharp notches that imply significant tax costs for businesses crossing them.
11 min read
The Five Most Pro-Growth Options in the Options Guide
Some taxes have more powerful economic effects than others, and that’s a lesson policymakers should absorb as they work to craft a tax code that encourages growth and raises sustainable revenue.
8 min read
Tariff Refunds Have Wiped Out Tariff Revenue Since May
The economic damage from a chaotic tariff regime can outweigh the revenue itself, and unlike the tariffs, it cannot be refunded.
4 min read
How Expensing for Capital Investment Transforms Project Economics: A Case Study Approach
The OBBBA made substantial improvements to cost recovery, but more opportunities remain for policymakers looking to improve the investment climate in the US.
48 min read
Does the EU Tax Omnibus’ R&D Expensing Proposal Make the EU More Competitive?
The EU Tax Omnibus proposal would create an EU-wide minimum standard for full expensing, but it confines that standard to qualifying tangible assets used in research and development (R&D) rather than to broader asset classes.
16 min read
Full Expensing in the United States and Canada Boost Worldwide Investment Climate
Rather than adopt temporary policies that phase out and expire, policymakers should focus their efforts on long-term reforms to support investment.
7 min read
Tracking the Impact of the Trump Tariffs & Trade War
The Trump tariffs have not meaningfully altered the trade balance and amount to an average tax increase per US household of $900 in 2026.
57 min read
Overview of the Tax Foundation’s General Equilibrium Model
The Tax Foundation uses and maintains a General Equilibrium Model, known as our Taxes and Growth (TAG) Model to simulate the effects of government tax and spending policies on the economy and on government revenues and budgets.
9 min read
Capital Cost Recovery across the OECD, 2026 Update
The ongoing economic uncertainty from global geopolitical threats, supply chain disruptions, rising interest rates, and lagging economic growth in many developed countries have highlighted the importance of private business investment.
32 min read
Capital Allowances in Europe, 2026
Although sometimes overlooked in discussions about corporate taxation, capital allowances play an important role in a country’s corporate tax base and can impact investment decisions—with far-reaching economic consequences.
6 min read
A Competitive Corporate Tax Code is Key to Sustaining Strong Economic Growth
The 12-year history of Tax Foundation’s ITCI shows that tax policy is constantly in flux around the world and that tax policy design choices matter for economic growth.
5 min read
Sales Tax Holidays by State, 2026
However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
12 min read
The Hidden Costs of Foreign R&D Amortization
Foreign R&D generally complements domestic innovation rather than substituting for it, so penalizing foreign R&D weakens US firms in cross-border mergers and acquisitions and in domestic production that depends on global scale.
7 min read
Taxing Data Processing Doesn’t Just Tax Big Tech
Policymakers are increasingly considering taxes on data processing and other businesses’ digital services, but these taxes increase costs at many stages of the production process for virtually all businesses, not just tech-oriented businesses.
7 min read
Flawed EU Tax Disclosure Standards Will Cause Confusion
The EU public country-by-country data provides information on taxes and profits that do not align with standard financial disclosure requirements.
6 min read