Taxes

Current tax law favors borrowing over selling appreciated assets. We explore three targeted reform options aimed at neutralizing this tax preference: treating borrowing as a taxable event, requiring prepayment of capital gains tax at time of borrowing, and a flat tax on certain loans.

Both candidates in the 2024 presidential election have expressed support for a tax exemption on tips. This report adds to the ongoing policy conversation by offering a quantitative look at several interpretations of the proposal, including its potential costs and down-stream consequences.