Research report

States invest in three areas to encourage job and wage growth: the marketplace, the workforce, and the community. Marketplace investment includes general business support and finance assistance, small-business procurement programs, and tax incentives. Workforce programs develop and train the...

April 24, 2017
Norton Francis, Megan Randall
Research report

This research report was originally published by the Columbia Journal of Tax Law. The publication is updated version of, "An Analysis of the...

April 5, 2017
Leonard E. Burman, James R. Nunns, Benjamin R. Page, Jeffrey Rohaly, Joseph Rosenberg
Research report

States vary in how much governments collect in revenue and spend on goods and services. To understand the sources of these differences, we examined what states could raise (revenue capacity) and would spend (expenditure need) if they followed national averages, taking into account their own...

March 8, 2016
Tracy Gordon, Richard C. Auxier, John Iselin
Research report

This paper gives an overview of the TPC’s methodology for dynamic analysis of tax proposals. Following the practice of official government estimators, we use a Keynesian model to estimate the short-term effects of policy changes on output relative to its full-employment level. That model assumes...

April 5, 2017
Benjamin R. Page, Kent Smetters
Research report

The synthetic control method is an increasingly popular method for state policy evaluation. It provides quantitative support for case studies by creating a synthetic control region that simulates what the outcome path of a region would be if it did not undergo a particular policy intervention....

March 29, 2017
Robert McClelland, Sarah Gault
Research report

Territorial tax systems require clear rules to distinguish between taxable domestic and exempt foreign-source income. Defining the source of a multinational company’s profits is difficult, however, especially for profits that are attributable to intangible assets. Shifting of reported profits to...

March 28, 2017
Eric Toder
Research report

What makes people perceive their taxes as “fair”? We worked with the news website Vox to produce a short quiz about tax knowledge, which we used to test whether drawing readers’ attention to certain aspects of the tax code changed their opinions about the fairness of their own taxes. We found...

March 29, 2017
Vanessa Williamson
Research report

We model taxpayer decisions to realize or delay their capital gains and losses. We use a unique data set of capital asset sales to examine the shifting of gains across time periods with different tax rates, but eliminates the effect of the large pool of accrued gains that enlarge previous...

February 7, 2017
Timothy Dowd, Robert McClelland
Research report

New information from the Congressional Budget Office allows an update of the fiscal outlook. While deficits are manageable in the short run, the debt-GDP ratio is already high relative to historical norms. Under “current policy,” we project the ratio will rise to 96 percent by 2027 and 154...

January 29, 2017
Alan J. Auerbach, William G. Gale
Research report

This paper applies the Schumpeterian view of entrepreneurship to estimate the tax rate on entrepreneurial income under alternative assumptions about the pattern of returns from innovations, the tax rules applied to different types of income (wages, interest, capital gains, dividends, corporate...

January 2, 2017
Eric Toder