Taxes

This report evaluates four reform options ranging from modest to comprehensive: limiting the deduction to primary residences only, capping deductible interest at $20,000 or $10,000 annually, and full repeal.

The recent data sharing agreement between the IRS and ICE could cause a decline in the share of unauthorized immigrant residents who file taxes, leading to a decline in federal revenues. This analysis attempts to estimate the magnitude of this effect.

An explainer summarizing the U.S. international tax system.

This analysis examines potential scenarios for U.S. implementation of Pillar 2, ranging from U.S. not implementing while most other countries adopt to full adoption by the U.S., including the Undertaxed Profits Rule (UTPR).

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.

There is considerable interest in cutting government spending in the putative pursuit of fiscal sustainability. Cutting funding to the IRS, however, greatly reduces revenue collected, far in excess of any savings.

Depreciation policy is likely to play an important role in upcoming discussion surrounding the expiration of TCJA provisions. Understanding how depreciation works and how it has been treated in the tax code historically is important for policymakers to make informed decisions.