neutral cost recovery Archive
Expanding Affordable Housing: Tax Policy’s Role
March 7, 2023
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TweetShareSharePin0 Shares Note: The following is the testimony of Garrett Watson, Senior Policy Analyst and Modeling Manager at the Tax Foundation, prepared for U.S. Senate Committee on Finance hearing on March 7, 2023, titled, “Tax Policy’s Role in Increasing Affordable Housing Supply for Working Families.” Reforming the Low-Income Housing Tax Credit and Improving Cost Recovery
Index for Inflation Tax Adjustments
February 16, 2023
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TweetShareSharePin0 Shares This week, the Bureau of Labor Statistics (BLS) released data showing that the consumer price index (CPI) rose 0.5 percent in January compared to December 2022, reaching 6.4 percent over the prior 12 months. While inflation has trended down over the past six months, it will likely continue to be above the Federal
RSC Budget for FY 2023
June 9, 2022
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TweetShareSharePin0 Shares The Republican Study Committee (RSC) released its FY 2023 budget today, led by Budget and Spending Task Force Chair Rep. Kevin Hern (R-OK) and RSC Chairman Jim Banks (R-IN), and prescribes several pro-growth tax reforms that would simplify the tax code and encourage business investment. Among the most impactful reforms are permanence for
Investment in American Workers and Supply Chains
March 24, 2022
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TweetShareSharePin0 Shares While much of Washington is focused on negotiations over a government spending bill on competitiveness with China, Reps. Jackie Walorski (R-IN) and Jim Banks (R-IN) introduced a commonsense policy to boost U.S. competitiveness. The Renewing Investment in American Workers and Supply Chains Act would improve the tax treatment of investments in structures, such
10 Tax Reforms for Economic Growth and Opportunity
February 22, 2022
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TweetShareSharePin0 Shares Key Findings The waning pandemic and robust economic recovery have come with many benefits—plentiful jobs and fast-growing (nominal) incomes—but also serious challenges such as high and rising inflation. Rather than pushing for more fiscal stimulus or leaving it to the Federal Reserve to handle inflation through higher interest rates, policymakers should focus on
Fiscal Policy Inflation Tax Policy Options
January 24, 2022
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TweetShareSharePin0 Shares Consumer prices rose by 7 percent in 2021, the highest annual rate of inflation since 1982. Where did this inflation come from and what might its impacts be? Tax and fiscal policy offer important clues. Initially thought to be “transitory” and largely the result of pandemic-related supply-chain issues, many economists at the Federal
Taxes Could Negatively Impact Housing
August 13, 2021
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TweetShareSharePin0 Shares Within the last year, the median sales price of houses sold in the United States rose by 16.2 percent while sales of new single-family houses dropped by 19.4 percent, an indication that demand for housing continues to outpace supply. While President Biden has many proposals aimed at increasing the supply of affordable housing,
Proposals to Fix Upcoming Federal Tax Changes
July 1, 2021
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TweetShareSharePin0 Shares Three upcoming tax law changes scheduled by the 2017 Tax Cuts and Jobs Act (TCJA) to help offset its revenue losses would be canceled by proposed legislation that would prevent the tax treatment of investment from worsening over the coming years. Three Upcoming Tax Increases on Investment Policy Timing Requirement to amortize R&D
Expensing Is Infrastructure, Too | Tax Foundation Analysis
June 15, 2021
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TweetShareSharePin0 Shares The Biden administration has suggested several tax increases for his infrastructure plan. Public infrastructure can help increase economic growth, but by raising taxes on private investment, the net effect on growth may be negative. However, tax options like retaining expensing for private R&D investment or making 100 percent bonus depreciation for equipment permanent
Republican Study Committee Budget: Tax Policy Ideas
May 19, 2021
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TweetShareSharePin0 Shares While much of the tax policy now under debate aims to increase the tax burden on businesses, several policies in the newly released Republican Study Committee (RSC) budget for Fiscal Year 2022 focus on reducing the tax code’s barriers to investment and saving. The RSC budget contains many possible tax reforms, but two
