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...

This paper provides estimates of the total cost of non-business tax expenditures claimed on individual tax returns, taking account of interactions among provisions, and of their distributional effects among income groups. We estimate that non-business tax expenditures reduced tax liability by $1...

This report takes an investigative look at federal revenue spent on professional sports stadiums. Visit the Brookings Institution's website to try...

US fiscal policy has long been unsustainable, driven largely by automatically growing entitlement spending and insufficient revenues. Often overlooked is the extent to which this preordained fiscal policy limits policymakers’ discretion to act on new priorities each year. This study lays out...

Every year, the Urban Institute produces hundreds of reports, briefs, webcasts, and blog posts. In this publication, Urban’s State and Local Finance Initiative brings together the latest evidence-based research, data, and solutions with direct relevance for analysts crafting and deliberating...

Economists widely advocate establishing a price on carbon as a central means of reducing greenhouse gas emissions and the risks of global climatic disruption and ocean acidification. To be sure, a price on carbon is necessarily one part of a broader climate policy portfolio that includes...

Introducing a federal consumption tax as a replacement for the employer payroll tax would achieve the intended policy goals of prior consumption tax proposals while overcoming their policy shortcomings. The base and design of the consumption and employer payroll taxes are closely related,...

This report updates and revises the authors’ 2014 proposal to replace the corporate income tax with taxation at ordinary income rates of dividends and net accrued capital gains of American shareholders. The new proposal retains a 15 percent corporate income tax, gives taxable shareholders a...

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...

This article introduced FAS 133, which was a new accounting standard for derivatives and hedges—and then compared the tax rules applicable to these instruments. It suggested the two sets of rules be reconciled. That is, derivatives be marked-to-market for tax purposes, as they are for financial...