Senator Bernie Moreno’s proposed RECLAIM Act (S. 5689) would impose a 100 percent tax on state and local “incentives” for large AI data centers, including state sales tax exemptions for servers and chips.
7 min read
If lawmakers want to pay for new government spending, better approaches include broadening the income tax base, reforming the corporate tax, or taxing consumption.
9 min read
The US Supreme Court struck down the International Emergency Economic Powers Act (IEEPA) tariffs in February, so why are Americans still paying tariffs?
Evaluations of digital services taxes in the UK and Belgium show tiny annual revenue collections relative to the total treasury revenue raised by the government. Our dynamic modeling shows digital services taxes reduce both labor and capital supply, lowering investment, GDP, and labor compensation.
15 min read
Explore the IRS inflation-adjusted 2027 tax brackets, for which taxpayers will file tax returns in early 2028.
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Tax Foundation Europe’s input to the European Commission’s public consultations on the Tax Omnibus proposal reviews selected issues that have an impact on growth and competitiveness.
Taxes are an important part of the mix, and modernizing a state’s tax structure helps position it for growth. States that rank better on the Index have better-structured tax codes, and states with better-structured tax codes get Wins Above Replacement.
5 min read
The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
121 min read
With Democrats retaking control of the US House of Representatives and US Senate, several new federal tax issues are on the table for 2027.
7 min read
The UK’s 2026 Autumn Budget largely favors short-term relief over growth, highlighting the need for pro-growth reforms such as replacing the Stamp Duty Land Tax with annual property or land taxes.
8 min read
Short FormEconomics isn’t just a course with supply and demand graphs and a quirky usage of “guns and butter.” It’s a discipline focused on incentives and responses, and we can see its impact all around us, shaping our world and our choices.
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The debt limit is one of Congress’s few chances to debate unsustainable borrowing, and reforms should create more room for bipartisan deficit reduction, not less.
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The Senate recently passed the Taxpayer Assistance and Service Act, which contains 65 provisions to improve tax administration and the IRS.
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22 of the 27 EU Member States have implemented both the income inclusion rule and the qualified domestic minimum top-up tax in 2026.
4 min read
This November, states across the country are asking voters to consider changes to their state constitutions to address the burden of rising property taxes.
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If we want to ensure that AI raises economic growth, we shouldn’t be pursuing tax policies that are stuck in the past and represent some of the worst ideas from the early internet age.
While the government will never close the tax gap or fully eliminate tax fraud, lawmakers and the IRS can institute several reforms to reduce the gap, including simplifying the tax code, increasing third-party information reporting, and coordinating anti-fraud efforts.
7 min read
With Social Security insolvency rapidly approaching and policymakers exploring changes to benefits and taxation, Congress could look to base-broadening reforms like the ECT as a guide for how to think about taxing compensation and broadening the tax base.
4 min read
Under Spain’s current Social Democratic government, the country has fallen from 27th to 35th (out of 38 OECD countries) in the International Tax Competitiveness Index.
8 min read
Want to know how much you’ll owe during tax filing season? Then you need to know your taxable income.