Tax Policy Center


Research report

A robust carbon tax would generate considerable revenue. Some carbon tax advocates have suggested returning those revenues to Americans through direct payments, often called carbon dividends. We examine how to design these dividends considering two, sometimes conflicting, principles. Carbon...

December 12, 2018
Donald MarronElaine Maag

This brief documents how the US tax system treats the most common forms of equity compensation, including stock, restricted stock units, and stock options. In most cases, these forms of equity compensation are taxed just like cash wages, salaries, and bonuses. Employees pay ordinary income taxes...

October 4, 2017
Donald Marron

Donald Marron, Institute Fellow at the Urban-Brookings Tax Policy Center, testified before the US Senate Committee on Finance as part of the hearing "Business Tax Reform." Marron presented seven main points about business tax reform based on the proposals that have been discussed by the Congress...

September 19, 2017
Donald Marron
Research report

Governments are starting to use taxes to discourage consumption of sugary drinks. Those taxes typically scale with drink volume. But sugar content varies widely. This report analyses the potential benefits and costs of scaling these taxes to sugar content. Taxes based on sugar content reduce...

December 12, 2016
Norton FrancisDonald MarronKim S. Rueben
Research report

Controversy rages about how to tax carried interest. One view sees carry as compensation that should be taxed like other labor income. Another sees carry as a reward for financial risk-taking that should be taxed like capital income. A third sees carry as creating a costly tax arbitrage. In this...

October 6, 2016
Donald Marron

Former CBO director Doug Elmendorf recently argued that Congress should account for macroeconomic feedback when scoring major tax and spending policies. In this brief, Donald Marron agrees, arguing that CBO and JCT can implement such dynamic scoring in an objective, nonpartisan manner. Dynamic...

June 20, 2016
Donald Marron

How should governments use the considerable revenue carbon taxes can raise? There are many options for cutting other taxes, increasing spending, or reducing borrowing. We organize the options into four goals: offset the new burdens that a carbon tax places on consumers, producers, communities,...

February 22, 2016
Donald MarronAdele C. Morris
Research report

Corrective taxes can encourage healthier, safer, and less polluting behavior. But how should governments use their revenue? Options abound to cut other taxes, boost spending, or reduce borrowing. We organize those uses into four categories: offsetting new burdens, furthering the same goal,...

January 29, 2016
Adele C. MorrisDonald Marron
Research report

What we eat and drink can cause obesity, diabetes, hypertension, and other conditions. In response, many governments have enacted or are considering taxes on unhealthy food and drinks. This report evaluates the rationale behind such taxes; reviews evidence on their effects; analyzes different...

December 14, 2015
Donald MarronMaeve E. GearingJohn Iselin

From TaxVox