The House and Senate just passed different versions of proposals to restructure the federal income tax. As of December 12, 2017, a House-Senate conference committee was reconciling the two bills. The bills reduce the corporate tax rate to 20 percent, introduce a preference for income from pass-...
Both the Senate and the House versions of the Tax Cuts and Jobs Act (TCJA) would reduce taxes on average for all income groups. However, not all taxpayers would benefit to the same degree, and some would pay higher taxes. Even taxpayers with the same income could pay different amounts of tax...
Both territorial and worldwide systems for taxing income of multinational companies are difficult to implement because the concepts of income source and corporate residence on which the systems are based have become less economically meaningful. Recent legislation enacted by the House and Senate...
The Tax Policy Center has released an analysis of the macroeconomic effects of the Tax Cuts and Jobs Act as passed by the Senate on December 2, 2017. We find the legislation would boost US gross domestic product (GDP) 0.7 percent in 2018, have little effect on GDP in 2027, and boost GDP 0.1...
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 both the House and Senate versions of the Tax Cuts and Jobs Act. When ignoring...
The Tax Policy Center has released distributional estimates of the Senate version of the Tax Cuts and Jobs Act as passed on December 2, 2017. We find the bill would reduce taxes on average for all income groups in both 2019 and 2025. In general, higher income households receive larger average...
The Tax Policy Center has released an analysis of the macroeconomic effects of the Tax Cuts and Jobs Act as passed by the Senate Finance Committee on November 16, 2017. We find the legislation would boost US gross domestic product (GDP) 0.7 percent in 2018, have little effect on GDP in 2027, and...
Balanced budget requirements (BBRs) prohibit states from spending more than they collect in revenue. This fact sheet describes how BBRs vary in stringency and design and reviews evidence on whether stricter antideficit provisions produce “tighter” state fiscal outcomes, such as reduced spending...
Although most states produce a budget annually, 20 states produce a budget every other year for the upcoming two fiscal years, or biennially. This fact sheet describes the budget process and reviews the evidence on how annual and biennial budgeting, as well as the line item veto, affect fiscal...
Budget stabilization funds (BSFs), also known as rainy day funds, allow states to set aside surplus revenue for times of unexpected revenue shortfall or budget deficit. This fact sheet describes how BSF rules vary across states and reviews evidence on how they affect savings and volatility.
What Workers and Companies Should Know About the Republican Tax Bills
The House and Senate just passed different versions of proposals to restructure the federal income tax. As of December 12, 2017, a House-Senate conference committee was reconciling the two bills. The bills reduce the corporate tax rate to 20 percent, introduce a preference for income from pass-...
Effects of the Tax Cuts and Jobs Act on Representative Families
Both the Senate and the House versions of the Tax Cuts and Jobs Act (TCJA) would reduce taxes on average for all income groups. However, not all taxpayers would benefit to the same degree, and some would pay higher taxes. Even taxpayers with the same income could pay different amounts of tax...
Territorial Taxation: Choosing Among Imperfect Options
Both territorial and worldwide systems for taxing income of multinational companies are difficult to implement because the concepts of income source and corporate residence on which the systems are based have become less economically meaningful. Recent legislation enacted by the House and Senate...
Macroeconomic Analysis of the Tax Cuts and Jobs Act as Passed by the Senate
The Tax Policy Center has released an analysis of the macroeconomic effects of the Tax Cuts and Jobs Act as passed by the Senate on December 2, 2017. We find the legislation would boost US gross domestic product (GDP) 0.7 percent in 2018, have little effect on GDP in 2027, and boost GDP 0.1...
Winners and Losers After Paying for the Tax Cuts and Jobs Act
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 both the House and Senate versions of the Tax Cuts and Jobs Act. When ignoring...
Distributional Analysis of the Tax Cuts and Jobs Act as Passed by the Senate
The Tax Policy Center has released distributional estimates of the Senate version of the Tax Cuts and Jobs Act as passed on December 2, 2017. We find the bill would reduce taxes on average for all income groups in both 2019 and 2025. In general, higher income households receive larger average...
Macroeconomic Analysis of the Tax Cuts and Jobs Act as Passed by the Senate Finance Committee
The Tax Policy Center has released an analysis of the macroeconomic effects of the Tax Cuts and Jobs Act as passed by the Senate Finance Committee on November 16, 2017. We find the legislation would boost US gross domestic product (GDP) 0.7 percent in 2018, have little effect on GDP in 2027, and...
Balanced Budget Requirements
Balanced budget requirements (BBRs) prohibit states from spending more than they collect in revenue. This fact sheet describes how BBRs vary in stringency and design and reviews evidence on whether stricter antideficit provisions produce “tighter” state fiscal outcomes, such as reduced spending...
The Budget Cycle and Line-Item Veto
Although most states produce a budget annually, 20 states produce a budget every other year for the upcoming two fiscal years, or biennially. This fact sheet describes the budget process and reviews the evidence on how annual and biennial budgeting, as well as the line item veto, affect fiscal...
Budget Stabilization Funds
Budget stabilization funds (BSFs), also known as rainy day funds, allow states to set aside surplus revenue for times of unexpected revenue shortfall or budget deficit. This fact sheet describes how BSF rules vary across states and reviews evidence on how they affect savings and volatility.