Research

The Complicated Taxation of America’s Retirement Accounts

Changes to the way we tax long-term savings could remove the excess tax burden on saving and investment, helping individuals to better provide for their financial future.

Contrary to “Fair Share” Claims, Businesses are Central to Tax Collection Systems

Taxes matter to investment decisions. Global tax collectors must weigh the marginal benefit of additional revenues against the economic harm high business taxes could cause.

Help from Our Friends: What States Can Learn from Tax Reform Experiences across the Country

Important lessons can be learned from other state experiences with tax reform. While Kansas teaches us what not to do, Utah, Indiana, North Carolina, and the District of Columbia illustrate that smart, sensible tax reform is possible.

A Hybrid Approach: The Treatment of Foreign Profits under the Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act moved the U.S. toward more of a territorial corporate tax system used by most other OECD countries. However, the U.S. law contains key differences in the treatment of foreign profits.

Property Tax Limitation Regimes: A Primer

Recommendations to Congress on the 2018 Tax Extenders

Congress should allow these tax extenders to expire and instead focus on making permanent features of the tax code that move it toward a more ideal system, such as full expensing.

Will Illinois Double Down on High Taxes?

Amending the Illinois constitution and adopting a graduated-rate income tax cannot solve the state’s fundamental problems. Instead, it doubles down on an already uncompetitive tax code.

New York, New Jersey, and Connecticut v. the United States: A Preview of the SALT Limit Constitutional Challenge

The threatened lawsuit may be more a political exercise than a legal one, as a judge is unlikely to rule that the SALT deduction cap violates either the Equal Protection Clause or the Tenth Amendment

How an Unexpected Revenue Ruling Penalizes Capital Investment in Pennsylvania, and How Lawmakers Can Fix It

Failure to reverse this newly adverse treatment of capital investment makes it less likely that businesses will invest in Pennsylvania.

Should Congress Act Before SCOTUS On Online Sales Taxes?

The U.S. Supreme Court is hearing a case on the constitutionality of a South Dakota law requiring internet vendors collect online sales tax, but should Congress fix the problem first?

Tax Reform Isn’t Done

Expiring provisions, scheduled tax increases on investment, unresolved issues in the code—The Tax Cuts and Jobs Act was passed, but tax reform isn’t done yet.

Getting “Real” by Indexing Capital Gains for Inflation

Many elements of the income tax are adjusted for inflation, such as tax brackets, but the purchase price of assets that are later sold for capital gains or losses is not. Here’s the case for changing that.

Marriage Penalties and Bonuses under the Tax Cuts and Jobs

The marriage penalty and the marriage bonus are each ways that the income tax code violates the principle of neutrality and affects taxpayer behavior. Here’s how each works and why they deserve attention.

Tax Reform Moves to the States: State Revenue Implications and Reform Opportunities Following Federal Tax Reform

Federal tax reform gives states an opportunity to improve their own tax codes. This study surveys the federal provisions to which states conform, what each state can expect from federal tax changes, and what options are available to them.

State Strategies to Preserve SALT Deductions for High-Income Taxpayers: Will They Work?

The scramble to restore the full state and local tax deduction for high-income taxpayers has resulted in inventive proposals that, for both legal and practical reasons, are unlikely to succeed.

State Tax Changes That Took Effect on January 1, 2018

Preliminary Details and Analysis of the Tax Cuts and Jobs Act

According to the Tax Foundation’s Taxes and Growth Model, the Tax Cuts and Jobs Act would lead to a 1.7 percent increase in GDP over the long term, 1.5 percent higher wages, an additional 339,000 full-time equivalent jobs, and cost $1.47 trillion on a static basis and by $448 billion on a dynamic basis.

Trends in State Tax Policy, 2018

In 2018, trends to watch in state tax policy will include reductions in corporate tax rates, the spread of gross receipts taxes, new and lower taxes on marijuana, estate tax repeal, a wait-and-see approach on federal tax reform, and more.

Measuring Marginal Tax Rate on Capital Assets

This study demonstrates how Tax Foundation’s TAG model calculates the weighted average METRs for different capital assets in the corporate and noncorporate sectors. The high marginal rates of up to 53 percent in the corporate sector illustrate why there is an urgent need for business tax reform.

Preliminary Details and Analysis of the Senate’s 2017 Tax Cuts and Jobs Act

This comprehensive overview of the of the Senate Tax Cuts and Jobs Act includes a summary of its details and macroeconomic analysis of how it would impact federal revenue, wages, GDP, and after-tax incomes.