The US tax system provides a deduction for charitable giving, but only for the 25 percent of taxpayers who itemize deductions on their tax returns. Accordingly, advocates for the charitable sector have at times proposed to extend a deduction to itemizers and nonitemizers alike. Today these...

This brief analyzes seven options for Child Tax Credit reform that would (1) make the CTC more consistent with other parts of the tax code; (2) target additional benefits to young children; or (3) broadly increase the credit for most current recipients.

Nearly all state tax commissions—independent groups that study and make recommendations for improving a state’s tax system—are tasked with improving economic development within the state. Their report introductions include phrases such as “growth-friendly,” “unleash innovation,” and “optimum...

Tax policy is one of the most challenging and controversial components of state governance. Determining how and from whom to collect revenue involves questions of equity, fairness, efficiency, and simplicity. As a result, states often create special tax commissions before attempting major tax...

This paper gives an overview of the methodology behind the short- and long-run dynamic scoring of Hillary Clinton’s and Donald Trump’s tax plan proposals. Following the practice of official government estimators, we use a Keynesian model to estimate the short-term effects of policy changes on...

States spend billions of dollars every year on economic development activities that range from recruiting new businesses to helping local businesses expand. At the heart of each state’s economic development strategy is an agency, department, or government-supported nonprofit that coordinates the...

In this installment of the Star Forum, experts weigh in on the following question: Senate Finance Committee Chair Orrin G.
Hatch, R-Utah, has announced that he is drafting a proposal in favor of corporate integration. Do you think that corporate integration is a good idea? What factors...

Former CBO director Doug Elmendorf recently argued that Congress should account for macroeconomic feedback when scoring major tax and spending policies. In this brief, Donald Marron agrees, arguing that CBO and JCT can implement such dynamic scoring in an objective, nonpartisan manner. Dynamic...

Every state uses a different combination of taxes to fund government services. Some rely more heavily on income taxes, and others see the most revenue from consumption taxes, such as general sales taxes or excise taxes on select goods. The effect of a state’s tax structure on economic...