Inflation

Push for Higher Taxes Is Misguided During a Time of Inflation and Looming Recession

Some 40 years ago, the U.S. dealt with high inflation and slow economic growth. Then as now, the solution is a long-term focus on stronger economic growth and sustainable federal budgets.

Idaho’s Tax Hiking Ballot Measure Is Riddled With Mistakes

Idaho Ballot initiative would impose an incredibly high top marginal rate that would fall on many small businesses, not just high-income earners.

Efforts to Improve Tax Treatment of Saving Gain Traction on Hill

The proposals share a common goal of improving incentives for households to save during a time when inflation is impacting their finances.

Impact of Elections on French Tax Policy and EU Own Resources

The French election results are paralyzing for French pro-growth tax reforms, pessimistic for EU own resources, and dire for overall economic certainty.

Pro-Growth Tax Reforms Throughout the Republican Study Committee’s FY 2023 Budget

The United States needs to grow its way out of inflation and set the economy up for continued growth—the tax code provides tools for policymakers to do just that.

Clean Up on the Grocery Tax Aisle

Amidst soaring inflation, policymakers across the political spectrum proposed many ideas to soften the blow of higher prices–especially for low-income workers and families. One idea that caught on quickly: sales tax relief on groceries. The idea had its merits, but Tax Foundation research shows that it may have missed the mark.

3 Takeaways from the New Congressional Budget Office Outlook

The CBO projections show policymakers’ top priority over the next five years will need to be cleaning up our country’s fiscal situation while maintaining a pro-growth and competitive tax code.

Oklahoma Should Prioritize Pro-Growth Relief, Not Gimmicky Rebate Checks

If Sooner State policymakers want to use a portion of their higher revenues to make the economy work better for all Oklahomans, they should consider repealing the franchise tax, trimming the income tax, or both—paired, if desired, with targeted aid to those in the greatest need—not writing a single round of gimmicky checks.

Public and Private R&D Are Complements, Not Substitutes

U.S.-China Trade War Hurt American Industries and Workers

While the U.S. tariffs were intended to protect American industries, they have largely hurt the U.S. economy. Rather than pass on the tariffs to Chinese consumers, analysis shows that most U.S. firms simply bore the costs.

Capital Cost Recovery across the OECD, 2022

The ongoing economic uncertainty from the COVID-19 pandemic, supply chain disruptions, and current inflationary pressures have highlighted the importance of investment.

The Misguided Notion of Government-Set Prices for Prescription Drugs

Government-set pricing of prescription drugs is not a fix for today’s rampant inflation and further, it would give rise to new problems of its own.

Missouri Tax Reform Could Give State Competitive Edge

Tax reform has become a major focus for state legislatures this session, and Missouri lawmakers are tuned in to the action: after adjusting individual income tax triggers in 2021, the legislature is exploring further tax reform options.

Federal Corporate Tax Revenue and All Federal Tax Collections Headed for Another Record High

Total tax collections are currently running 25 percent higher than last year, and if that pattern holds, total federal tax collections will reach over $5 trillion in FY 2022—a new all-time high.

Personal Income Tax Adjusts for Inflation, But It Could Do Better

In times of inflation, a review of the tax code shows that some provisions are automatically indexed, or adjusted, to match inflation, while others are not. And that creates unfair burdens for taxpayers. But it’s not always as simple as just “adjusting for inflation.”

Georgia Makes Strides Toward Tax Competitiveness

Lawmakers can be proud of the steps that they have taken toward a better tax code but should consider revisiting the design of the bill’s tax triggers in order to better accomplish their goal of responsible improvement.

Biden Budget Would Raise Income Tax Rates to Highest in Developed World

The FY 2023 budget proposes several new tax increases, which in combination with the Build Back Better Act, would give the U.S. the highest top tax rates on individual and corporate income in the developed world.

Biden’s Budget Battle

In a letter to lawmakers, the 46th President said that his $5.8 trillion budget package would “[grow] our economy, while ensuring that the wealthiest Americans and the biggest corporations begin to pay their fair share.” We break down what the President is proposing for this upcoming fiscal year and what its impact would be on the U.S. economy in the face of record-high inflation.

Biden’s Trade Agenda Should End the Trade War and Promote Free Trade

The Biden administration should lift the Trump administration’s tariffs, as they have failed in their objective to bring better trading practices and instead brought about significant damage to U.S. businesses and workers.

State Legislatures Take Up Tax Reform and Relief in 2022

After a whirlwind of cuts and reforms in 2021, it looks like 2022 might be an even bigger year for state tax codes. Republican and Democratic governors alike used their annual State of the State addresses to call for tax reform, and there is already serious momentum from state lawmakers nationwide to get the job done.