Budget Reconciliation: Tracking the 2025 Trump Tax Cuts
Our experts are providing the latest details and analysis of proposed federal tax policy changes.
11 min read
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“Big Beautiful Bill” House GOP Tax Plan: Preliminary Details and Analysis
Our preliminary analysis finds the tax provisions increase long-run GDP by 0.8 percent and reduce federal tax revenue by $4.0 trillion from 2025 through 2034 on a conventional basis before added interest costs.
8 min read
The Good, the Bad, and the Ugly in the One, Big, Beautiful Bill
Republicans have advanced legislation to extend many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) alongside dozens of new provisions. Any comprehensive tax legislation is going to have its wrinkles, and the “One, Big, Beautiful Bill” is no different.
8 min read
Sources of Government Revenue in the OECD, 2025
Developed countries raise tax revenue through individual income taxes, corporate income taxes, social insurance taxes, taxes on goods and services, and property taxes—the combination of which determines how distortionary or neutral a tax system is.
4 min read
SALT Cap Workarounds for Some Pass-Through Entities Are Threatened by One, Big, Beautiful Bill
For owners of pass-through businesses, the reconciliation package (1) raises the state and local tax (SALT) deduction cap, (2) denies the benefit of pass-through entity-level taxes that had previously worked around the SALT cap for such pass-through businesses, and (3) increases the Section 199A deduction for qualifying pass-through entities.
4 min read
A More Generous SALT Deduction Cap in the Big, Beautiful Bill Would Cost Revenue and Primarily Benefit High Earners
Letting the SALT cap slip further upwards would undercut the TCJA’s long-term legacy, worsening the fiscal outlook of the tax package and providing an unneeded benefit to higher earners.
4 min read
The One Big Beautiful Bill, Explained
We break down the House GOP’s One, Big, Beautiful Bill—a sweeping tax package designed to extend key parts of the 2017 Tax Cuts and Jobs Act before they expire in 2026.
State and Local Tax Collections Per Capita by State, 2025
According to the latest economic data from the US Census Bureau, the average per capita state and local tax burden is $7,109. However, collections vary widely by state, reflecting differences in tax rates and bases, natural resource endowments, the scale and scope of taxable economic activity in each state, and residents’ political preferences.
5 min read
Disallowing Business SALT Raises Significant Revenue for Reconciliation but Slows Economic Growth
Pairing permanent TCJA individual tax cuts with new limits on business SALT deductions would shrink the economy, reduce American incomes, and increase the federal budget deficit, undermining the policy goals of TCJA permanence.
3 min read
Improving Tax Treatment of R&D Would Boost Productivity and Growth
As Congress debates expensing and other policies impacting business investment, lawmakers should consider the importance of business investment in research and development (R&D) as a driver for economic growth. Recent studies suggest that the economic benefits of R&D spending are even greater than previously understood.
7 min read
Tangible Personal Property De Minimis Exemptions by State, 2025
Does your state have a small business exemption for machinery and equipment?
4 min read
Five Things To Know About Trump’s Income Tax and Tariff Idea
President Trump has repeatedly floated the idea of entirely replacing the federal income tax with new tariffs. Recently, he has said that when tariff revenues come in, he will use them to replace or substantially cut income taxes for people making under $200,000.
8 min read
Businesses Pay and Remit 87 Percent of All Taxes Collected in Europe
Without businesses as their taxpayers and tax collectors, governments would not have the resources to provide even the most basic services.
5 min read
Nonresident Income Tax Filing Laws by State, 2025
One area of the tax code in which extreme complexity and low compliance go hand-in-hand—and where reform is desperately needed—is in states’ nonresident individual income tax filing and withholding laws.
7 min read
Missouri’s New Tax Cut Bill Sets the Stage for a Flat Tax Future
The flat tax trend is gaining momentum nationwide, and Missouri lawmakers are right to identify income tax rate reductions as particularly pro-growth.
4 min read
Blog
Short FormTax and Financial Illiteracy Are Costing Americans
The better we understand taxes, the better we can manage our finances, but it starts with familiarizing ourselves with basic tax concepts like how tax brackets work.
3 min read
No Tax on Tips and Overtime Proposals Gain Steam Across States, but Remain a Bad Idea
The trend of tax exemptions on tips, overtime, and bonuses may sound like a win for workers, but it is a shortsighted fix with long-term drawbacks.
11 min read
Estate, Inheritance, and Gift Taxes in Europe, 2025
Twenty-four out of the 35 European countries covered in this map currently levy estate, inheritance, or gift taxes.
3 min read
A New State Payroll Tax Could Drive Jobs out of Washington
With a wealth tax, property tax increases, and this new payroll tax on the agenda, Washington lawmakers have reason to fear that many employers could be looking for the exits.
5 min read
Facts & Figures 2025: How Does Your State Compare?
Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read