These are challenging times for tax policy. In recent years, it has played a vital role in providing economic relief and stimulus during the COVID-19 pandemic. Over the longer-term, it will be a key instrument as federal, state, and local government officials struggle to fill the enormous long-term fiscal gap. Will they turn to conventional avenues for raising revenues through individual and corporate income taxes and, at the state and local levels, sales and property taxes? Or will they look to new revenue sources, such as value-added taxes, carbon taxes, or taxes on wealth?

This updated version of the Tax Policy Center’s Briefing Book can help you keep up with those changes. It includes a wealth of information on features of the current tax system and possible future directions. It also explains many of the concepts used in tax, budget, and economic policy. Written for a general audience, it is intended to help the public, the press, students and staffers—anyone who wants to be well informed about current tax and budget matters.