Research

Sales Tax Holidays by State, 2018

Sales tax holidays are not sound tax policy as they create complexities for all involved, while inserting the political process into consumer decisions.

New Research Provides More Reasons to Repeal the Medical Device Tax

Making the Tax Cuts and Jobs Act Individual Income Tax Provisions Permanent

If extended, the individual income tax provisions in the Tax Cuts and Jobs Act would increase long-run GDP by 2.2 percent, long-run wages by 0.9 percent, and add 1.5 million new jobs.

The Distributional Impact of the Tax Cuts and Jobs Act over the Next Decade

Taxpayers in every income level will receive a tax cut in 2018 and for most of the next decade. See how the size of that tax cut will vary for each income group over the next decade with our new, long-term distributional analysis.

The Impact of Trade and Tariffs on the United States

State Tax Changes Taking Effect July 1, 2018

Reforming the Pass-Through Deduction

Here’s how the new pass-through deduction works and how it can be reformed to be less complex, less prone to abuse, more neutral, and more economically efficient.

Are Sugar-Sweetened Beverage Taxes Regressive? Evidence from Household Retail Purchases

Soda taxes are proposed with the promise to improve public health outcomes, but they come with equity concerns because of their regressive nature.

The Fixtures Fix: Correcting the Drafting Error Involving the Expensing of Qualified Improvement Property

Due to a legislative oversight, the Tax Cuts and Jobs Act excluded the category of qualified improvement property investment from 100 percent bonus depreciation.

Capital Cost Recovery across the OECD, 2018

One hundred percent expensing for short-life business investments was a great start but needs to be enacted on a permanent basis for it to have an impact on long-term decision-making.

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?