Tax Foundation

1. Evaluating the SALT Deduction Constitutional Challenge

   Four states have brought a lawsuit against the federal tax bill claiming that its $10,000 cap on the state-local deduction is unconstitutional. Here's why the lawsuit has little merit.

2. Dynamic Distributional Impact Shows the TCJA Lifts After-Tax Incomes Across Income Groups

   A recent Tax Foundation report analyzed the distributional impact of the Tax Cuts and Jobs Act (TCJA) on both a conventional and dynamic basis, and found it will lead to higher after-tax incomes over the 2018-2027 decade for all income groups. This is because of lower tax liabilities, on average, for all taxpayers, while the […]

3. The Economics of 1986 Tax Reform, and Why It Didn’t Create Growth

   Recently, an article in The American Prospect claimed that the Tax Cuts and Jobs Act (TCJA) will not lead to an increase in private investment, citing as evidence that even though the tax reform law of 1986 reduced the corporate tax rate from 46 percent to 34 percent, investment fell after the law passed. This […]

4. Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2018

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

5. New Analysis Shows How Input Tariffs Will Impact U.S. Manufacturing Sectors

   Last week, an economist at the Federal Reserve analyzed how tariffs on Chinese imports impact the U.S. manufacturing sector. An earlier analysis by the Peterson Institute for International Economics, summarized here, found that the Trump administration’s Section 301 tariffs almost exclusively apply to goods American companies import: 52 percent are intermediate inputs and 43 percent […]