Public Law 115-97, commonly known as the 2017 Tax Cuts and Jobs Act (TCJA), was the largest overhaul of the U.S tax system since 1986. TCJA significantly changed many features of federal individual and corporate income taxes, estate and gift taxes, and excise taxes. It introduced new terminology and new acronyms (think BEAT, GILTI, FDII, and QBI), and redefined how we think about existing concepts (such as child tax credits and the deduction for state and local taxes -- SALT).
This thoroughly updated version of the popular Tax Policy Center Briefing Book can help you keep up with those changes. It includes a wealth of information on features of the current tax system and the changes made by TCJA, as well as concepts used in tax, budget, and economic policy. It is written for a general audience, intended for the public and the press, students and staffers—anyone who wants to be well informed about current tax and budget matters.
WHAT IS THE BRIEFING BOOK?
The Tax Policy Center Briefing Book offers short explanations of important tax issues. Some sections simply provide background on the current state of tax and budgetary affairs: How much revenue does the federal government raise from which sources? How does the budget process work? Others explain the key elements of the tax system: What taxes are now on the books? How do they affect individuals, families, and businesses? How do those effects change over time? Still others look forward, evaluating various proposals to improve the federal tax system: What incremental reforms would make the system work better? What impacts would more fundamental reforms have? And there are some that examine how state and local governments raise funds and how their taxes interact with the federal tax system.
HOW IS THE BRIEFING BOOK ORGANIZED?
The briefing book is organized into four topic areas: background, key elements of the US tax system, possible reforms, and state and local taxes. Links at the end of each entry take you to references containing additional information. The glossary provides definitions of many technical terms related to taxation and budgeting.
Background: discusses general aspects of the federal budget and the US tax system.
Key Elements of the US Tax System: discusses specific aspects of federal individual and corporate income taxes, payroll taxes, estate and gift taxes, and excise taxes and how they affect taxpayers.
How Could We Improve the Federal Tax System: discusses changes that could make the current tax system simpler, fairer, and more efficient.
The State of State (and Local) Tax Policy: discusses how state and local governments raise funds to finance government services and other activities.
Glossary: defines many terms used in the briefing book.
HOW TO USE THE BRIEFING BOOK
The Tax Policy Center Briefing Book is not like other most other books: There is no beginning, middle, and end, and few readers will start with the first brief and read straight through to the last. Instead, you can pick a topic, read the basic information, and then follow the links to publications if you want to learn more. You may occasionally want to check online for new material as we will periodically expand and update the Briefing Book.
ACKNOWLEDGMENTS
The Tax Policy Center Briefing Book: A Citizens’ Guide to the Tax System and Tax Policy is the result of many people’s efforts. In addition to the authors and reviewers listed below, certain people deserve special credit for their roles in bringing the current briefing book to fruition. Frank Sammartino oversaw the book’s content and organization, and reviewed each entry. Aravind Boddupalli coordinated the project and created the graphs and tables. Devlan O’Connor edited the entries. Lydia Austin posted the entries and set up the web links.
LIST OF AUTHORS and reviewers
- Richard Auxier
- Sandy Baum
- Dan Berger
- Aravind Boddupalli
- Len Burman
- Bill Gale
- Harvey Galper
- Hilary Gelfond
- Tracy Gordon
- Aaron Krupkin
- Chenxi Lu
- Elaine Maag
- Donald Marron
- Mark Mazur
- Rob McClelland
- Gordon Mermin
- Ben Page
- Rudy Penner
- Caleb Quakenbush
- Megan Randall
- Jeffrey Rohaly
- Joseph Rosenberg
- Steve Rosenthal
- Kim Rueben
- Frank Sammartino
- Philip Stallworth
- Gene Steuerle
- Brett Theodos
- Eric Toder