Entrepreneurs create successful enterprises that generate substantial value through the innovations they introduce. They typically must wait many years before their firms generate net operating profits. The tax system favors entrepreneurial activity by allowing deferral of tax on the accrual of...

This study examines the effect of alcohol excise taxes on alcohol- related fatal traffic crashes. In 2015, 29.3 percent of the 35,092 traffic fatalities in the United States involved someone driving under the influence of alcohol. Raising federal or state excise taxes on alcoholic beverages...

Distributional analyses play a prominent role in policy discussions. Both tax and transfer policy have important distributional consequences, but traditionally they have been examined separately. This report describes a new methodology for integrated distributional analysis that imports results...

This analysis was updated on October 27, 2017 to incorporate dynamic scoring results.

The Tax Policy Center has produced preliminary estimates of the potential impact of proposals included in the “Unified Framework for Fixing Our Broken Tax Code.” We find they would reduce...

To help analysts craft next year’s state budgets, and to help reporters explain them and the public understand them, we compiled the Urban Institute’s and the Tax Policy Center’s best state-focused research in one place. The research in this compendium will help analysts better evaluate agency...

Families with young children tend to have lower incomes than other families. The current child tax credit provides substantial benefits to families with children, but the maximum benefit of $1,000 is the same for all children under 17, regardless of age. We analyze a proposal that would provide...

In this exercise, TPC estimates the revenue and distributional effects of proposals that would eliminate income tax expenditures to finance lower individual and corporate tax rates and reduce the federal budget deficit.

This paper provides results for three proposals: (1) eliminate...

The Tax Policy Center (TPC) prepared revenue and distributional estimates of a proposal to replace the current tax benefits for defined contribution (DC) qualified retirement plans with a new Guaranteed Retirement Account (GRA). TPC estimates that the proposal would reduce federal income and...

The Trump administration has announced the broad outlines of a tax reform plan that contains many provisions similar to those in the House GOP tax reform “blueprint” announced last year, but there are fundamental differences in the provisions affecting businesses and investors. While different,...

Tax cuts often look like “free lunches” for taxpayers, but they eventually have to be paid for with other tax increases or spending cuts.  We examine the distributional effects – with and without financing – of a tax plan consistent with the outline the Trump Administration produced in April. ...