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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.

All Related Articles

International Tax Crowding Out

Time to Shoulder Aside “Crowding Out” As an Excuse Not to Do Tax Reform

This paper evaluates the arguments for and against “crowding out” and compares these arguments to empirical studies. It discusses the impact of tax changes on the allocation of national income between consumption and saving, and the allocation of saving between private investment and government deficits. It finds that the crowding out argument is largely based on a mistaken assumption about the flexibility and availability of saving and credit for the financing of government deficits and private investment.

31 min read

The Jobs and Wage Effects of a Corporate Rate Cut

Corporate tax reform done right is key to growing the economy, boosting real family incomes, and making the U.S. a better place in which to do business.

5 min read
corporate income tax

Labor Bears Much of the Cost of the Corporate Tax

Recent empirical evidence shows that workers bear upwards of 70 percent of the corporate income tax burden, much more than popular tax models claim, which make errors in how they account for super-normal returns and the openness of our economy.

50 min read
Full expensing cash tax cuts and jobs act

Economic and Budgetary Impact of Temporary Expensing

Instead of making expensing temporary, lawmakers could pursue other ways to speed up cost recovery with permanent economic gains and without drastically reducing revenue. One way to do that is by enacting “depreciation indexing.”

12 min read