The 2017 Tax Cuts and Jobs Act (TCJA) sharply reduced effective corporate income tax rates on equity-financed US investment. This paper examines the reform’s impact on US inbound foreign direct investment (FDI) and investment in property, plant and equipment (PPE) by foreign-owned US companies....
NOTE: This is an updated version of the analysis published November 10, 2020.1
The Tax Policy Center (TPC) has analyzed the macroeconomic effects of the tax proposals that President Joe Biden advanced during his 2020 presidential campaign. We find the...
This technical brief describes the Tax Policy Center’s international investment and capital model (IICM) of cross-border tax rates. The Devereux-Griffith effective tax rate model underlying the IICM is explained in detail, and preliminary model outputs—effective marginal and average tax rates on...
This report describes the Tax Policy Center’s (TPC’s) improved methodology for analyzing the taxation of pass-through income (income generated through business activities that is taxed at the individual level). Under current law, certain types of pass-through income are taxed at different rates...
This chartbook explores the implications of the tax-advantaged treatment of pass-through income enacted as part of the Tax Cuts and Jobs Act of 2017 (TCJA). Section 199A of the TCJA allows a deduction from taxable income of 20 percent of certain pass-through income. We look specifically at the...
In this brief, we estimate the revenue and distributional effects of former vice president Joe Biden’s 2020 campaign tax proposals, based on information released by the Biden campaign and conversations with campaign staff. We analyze Biden’s proposals as of February 23, 2020...
The ongoing COP-27 climate conference will take stock of global greenhouse gas (GHG) emissions and encourage member countries to accelerate their efforts to reach climate...
Last week’s surprise budget deal, which includes about $370 billion in measures to combat global climate change, was sealed with improved terms for US oil...
According to recent news reports, Congressional Democrats are considering watered-down versions of two measures from last year’s Build Back Better Act . The alternative minimum...
Ballooning oil company profits have produced a volley of “windfall profit tax” proposals. How well would their different provisions meet the near-term US policy goals...
Corporate tax reforms introduced by the 2017 Tax Cuts and Jobs Act (TCJA) encouraged foreign-owned US companies to reinvest more of their earnings here, according...
The recent runup in oil prices and general inflation have boosted tax benefits from the “last-in, first-out” (LIFO) inventory accounting tax break. LIFO tax expenditures,...
President Biden’s 2023 budget would replace the current 10 percent base erosion anti-avoidance tax (BEAT) on US subsidiaries of foreign corporations with a 15 percent...
Democratic leaders have pledged to combat higher petroleum prices due to Russia’s invasion of the Ukraine. Shying away from a Russian oil boycott , they...
The Build Back Better (BBB) bill’s winter holiday gives Congress more time to evaluate the plan’s components, including a 15 percent minimum tax on the...
The Build Back Better proposal for a 1 percent excise tax on corporate share buybacks would reduce their tax advantage relative to dividend distributions. Equivalent...
Recent proposals to reform the tax treatment of US multinationals would increase US revenues substantially, according to an analysis by the Tax Policy Center. The...
US taxation of intellectual property (IP) is facing big changes. Starting next year, research and development (R&D) expenditures, now fully expensed (written off in the...
As another season of record-breaking heat, wildfires, and hurricanes unfolds, Congress is debating how to address climate change and fund green infrastructure in its $3.5...
A group of Senate Democrats has introduced a bill to impose tariffs on imports of carbon-intensive goods and fossil fuels equal to the domestic environmental...
Once the US economy recovers from the COVID-19 crisis, the federal government will need significant additional revenues to reduce its ballooning deficit. Congress and President...
The Biden Administration is taking steps to develop a new, global minimum tax on multinational corporations. The initiative, led by Treasury Secretary Janet Yellen, follows...
The tax community this week is mourning the loss of University of Southern California law professor Edward D. Kleinbard. Ed previously served as Chief of...
Over the next decade, the individual “ recovery rebate ” program will account for about half of the Coronavirus Aid, Relief and Economic Security (CARES)...
