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Economic and Tax Modeling

The Tax Foundation’s Center for Federal Tax Policy takes a quantitative approach to analyzing the economic, budgetary, and distributional impact of important campaign, legislative, and other popular tax proposals using our dynamic Taxes and Growth (TAG) macroeconomic model.

The mission of our economic and tax modeling program is to educate lawmakers and the public about the key trade-offs in tax policy, the real-world impact of those trade-offs on taxpayers and our economy, and the best options for achieving principled and pro-growth tax reform.

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Analysis of the Cost-of-Living Refund Act of 2019 Sherrod Brown Ro Khanna EITC expansion low-income tax credit

Analysis of the Cost-of-Living Refund Act of 2019

We estimate that a new proposal to expand the EITC would reduce federal revenue by $1.8 trillion and decrease long-run GDP by 0.29 percent, while boosting labor force participation for low-income tax filers by 822,788 full-time equivalent jobs.

10 min read

The Tax Foundation’s Taxes and Growth Model

In an attempt to provide a realistic, data-driven analysis of federal tax policy, the Tax Foundation has developed a General Equilibrium Model to simulate the effects of tax policies on the economy and on government revenues and budgets.

6 min read