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Tax Foundation

The Tax Foundation is the nation’s leading independent tax policy research organization. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and local levels.

Trends In State Tax Policy, 2018

Key Findings:

  • State tax changes are not made in a vacuum. States often adopt policies after watching peers address similar issues. Several notable trends in tax policy have emerged across states in recent years.
  • Four states cut corporate income taxes in 2017, three as part of planned multiyear reductions, and one (North Carolina) as a further rate reduction after the successful implementation of multiyear reforms.
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EU Letter To Treasury Should Not Change Tax Reform

Recently, a letter was sent to the U.S. Treasury from five European ministers of finance warning that some international provisions within the Tax Cuts and Jobs Act (TCJA) are out of line with international norms. The ministers identified three provisions in the House and Senate versions of the bill that could violate international rules.… Read more

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House And Senate Bill Limits On Interest Deductions

The House and the Senate tax bills restrict the deduction of business interest. Each bill limits the deduction to 30 percent of “modified income” with carryover of the excess to later years. Unfortunately, the Senate definition of “modified income” is much lower than in the House bill, and it undercuts the investment incentive provided by the expensing provision.… Read more

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JCT’s Analysis Shows The Tax Plans “Pay For Themselves” In Higher GDP

Since the release of the Joint Committee on Taxation’s (JCT) dynamic scoring of the House and Senate tax plans there has been a great deal of commentary about how the plans “don’t pay for themselves.” Critics point to JCT’s estimate that the growth generated by the plans reduces the expected revenue loss from roughly $1.5 trillion over ten years to around $1 trillion as some sort of failure of the plan, even though JCT’s model showed that the tax plans increased the size of the economy.… Read more

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Missouri Bill Would Sunset 47 Tax Credits

A Missouri bill introduced for consideration in the upcoming 2018 session would sunset 47 state tax credits, part of a continuing nationwide trend toward greater accountability on tax preferences. The bill’s sponsor, Rep. Dan Stacy (R), credits the June report of the state’s Committee on Simple, Fair, and Low Taxes, for inspiring the legislation.… Read more

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Ranking The Growth-Producing Tax Provisions In The House And Senate Bills

What is likely to get lost in the last-minute horse trading between House and Senate conferees as they feverishly work to reconcile differences between their respective tax plans is the primary objective of tax reform—economic growth. While each provision being discussed may have a strong political constituency behind it, some provisions generate more economic growth than others.… Read more

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