Tax Foundation

The Tax Foundation was organized on December 5, 1937, in New York City by Alfred P. Sloan Jr., Chairman of the General Motors Corporation; Donaldson Brown, GM Financial Vice President; William S. Farish, President of Standard Oil Company of New Jersey (Exxon); and Lewis H. Brown, President of Johns-Manville Corporation, who later became the first chairman of the board of The Tax Foundation.{{cite web |date=2002-09-01 |title=Celebrating Our 65th Year |url=https://taxfoundation.org/celebrating-our-65th-year/ |access-date=2017-02-15 |publisher=Tax Foundation}} The organization's stated goal was "to monitor the tax and spending policies of government agencies".{{cite web |date=1987-12-05 |title=Tax Foundation 1937–1987: The First Fifty Years |url=https://files.taxfoundation.org/legacy/docs/tfhistory1987-20060112.pdf |access-date=2017-02-15 |publisher=Tax Foundation}} Its offices were located at 50 Rockefeller Plaza and later 30 Rockefeller Plaza.

The Tax Foundation's first project was a successful effort to stop a tax increase in Westchester County, New York, where they provided research and analysis (including an "Expenditure Survey" of state spending) to local activists. By 1943, the Tax Foundation had helped set up taxpayers associations and expenditure councils in 35 states.

During World War II, Tax Foundation research emphasized restraining government spending domestically to finance wartime expenditures. In 1948, the Tax Foundation opened an office in Washington, D.C., and in 1978 relocated there completely. Its research and analysis has historically emphasized publicizing federal and state financial information, arguing against the use of tax systems for "social engineering," and urging "broad bases and low rates" tax reform.

Beginning in 1990, the Tax Foundation "operate[d] as a separate unit" of Citizens for a Sound Economy.{{cite web|url=https://files.taxfoundation.org/legacy/docs/e5e6abba4dc59512941d0b0e22fb2b85.pdf|title=Tax Features|date=January 1990|publisher=Tax Foundation|volume=34|number=1|access-date=2017-02-15}} By July 1991, it was again operating as an independent 501(c)(3) organization.{{cite web|url=https://files.taxfoundation.org/legacy/docs/72bbfeab670a2f70339618c556b54d81.pdf|title=Tax Features|date=July 1991|publisher=Tax Foundation|volume=35|number=6|access-date=2017-02-15}}

Beginning in 2009, the Tax Foundation's offices were located in the National Press Building in Washington, D.C.{{cite web|url=http://www.taxfoundation.org/contact |title=Tax Foundation, Contact Us |publisher=Taxfoundation.org |access-date=2012-04-05}} In 2015, the organization moved to its current location on G Street.{{cite web|url=https://taxfoundation.org/event/office-warming-reception |title=Office Warming Reception |publisher=Tax Foundation. taxfoundation.org |access-date=2017-10-27 |archive-url=https://web.archive.org/web/20150205071057/https://taxfoundation.org/event/office-warming-reception |archive-date=2015-02-05 |date=February 4, 2015}}

The Tax Foundation states that its research is guided by what it calls the principles of sound tax policy: simplicity, transparency, neutrality, and stability.{{cite web|url=https://taxfoundation.org/principles/|title=Principles of Sound Tax Policy|date=August 20, 2007|publisher=Tax Foundation|access-date=2017-02-15}}

Tax Foundation research is generally critical of tax increases,{{cite web|url=http://www.taxfoundation.org/research/show/24870.html|title=Portland Business Journal, Tax Foundation Criticizes State Tax Hikes|date=2009-07-09|publisher=Taxfoundation.org|archive-url=https://web.archive.org/web/20111103073858/http://www.taxfoundation.org/research/show/24870.html|archive-date=2011-11-03|access-date=2012-04-05}}{{cite web|url=https://taxfoundation.org/state-budgets-maryland-tax-increases-cant-keep-spending-increases/|title=State Budgets: Maryland Tax Increases Can't Keep Up With Spending Increases|last=Henchman|first=Joseph|date=2008-12-29|publisher=Tax Foundation|access-date=2017-02-15}}{{cite web|url=https://taxfoundation.org/economic-cost-high-tax-rates/|title=The Economic Cost of High Tax Rates|last=Carroll|first=Robert|date=2009-07-29|publisher=Tax Foundation|access-date=2017-02-15}}{{cite web|url=https://taxfoundation.org/dam-bursts-beaver-state-oregons-wave-tax-increases-and-new-spending/|title=The Dam Bursts in the Beaver State: Oregon's Wave of Tax Increases and New Spending|last1=Henchman|first1=Joseph|last2=Mountjoy|first2=Jack|date=2009-07-09|publisher=Tax Foundation|access-date=2017-02-15}} high business taxes,{{cite web|url=https://taxfoundation.org/business-taxes|title=Business Taxes|publisher=Tax Foundation|access-date=2017-02-15}} excise taxes,{{cite web|url=https://taxfoundation.org/individual-consumption-taxes/excise-taxes/|title=Excise Taxes|publisher=Tax Foundation|access-date=2017-02-15}} tax preferences for the housing industry,{{cite web|url=https://taxfoundation.org/giuliani-wrong-mortgage-interest-deduction/|title=Giuliani Wrong on Mortgage Interest Deduction|last=Prante|first=Gerald|date=2007-12-03|publisher=Tax Foundation|access-date=2017-02-15}} and use of tax credits, which the Foundation views as "picking winners and losers".{{cite web|url=https://taxfoundation.org/louisiana-tax-credits-politicians-picking-winners-and-losers/|title=Louisiana Tax Credits: Politicians Picking Winners and Losers|last=Henchman|first=Joseph|date=2009-07-11|publisher=Tax Foundation|access-date=2017-02-15}}{{cite web|url=https://taxfoundation.org/remarks-shaftesbury-society-luncheon-hosted-john-locke-foundation-raleigh-north-carolina/|title=Tax Foundation, Remarks to the Shaftesbury Society Luncheon|last=Henchman|first=Joseph|date=2009-05-05|publisher=Tax Foundation|access-date=2017-02-15}} The Foundation has spoken favorably of efforts to balance the federal budget with tax reform and significant spending cuts, such as the Bowles-Simpson plan,{{cite web|url=https://taxfoundation.org/draft-presidents-deficit-commission-stirs-fiscal-pot-washington|title=Draft from President's Deficit Commission Stirs the Fiscal Pot in Washington|date=2010-11-10|publisher=Tax Foundation|access-date=2017-02-15}} the Ryan Plan,{{cite web|url=https://taxfoundation.org/ryan-plan-smartly-marries-tax-reform-spending-reform/|title=Ryan Plan Smartly Marries Tax Reform with Spending Reform|last=Hodge|first=Scott|date=April 5, 2011|publisher=Tax Foundation|access-date=2017-02-15}} and the Wyden-Coats plan.{{cite web|url=https://taxfoundation.org/wyden-coats-tax-reform-plan-adds-debate-needs-fixing/|title=Wyden-Coats Tax Reform Plan Adds to Debate But Needs Fixing|last=Hodge|first=Scott|date=April 8, 2011|publisher=Tax Foundation|access-date=2017-02-15}}

The Tax Foundation describes itself as an "independent tax policy research organization". It is cited in the media as a nonpartisan or bipartisan organization,{{Cite news|url=https://www.washingtonpost.com/news/wonk/wp/2016/08/10/donald-trumps-new-tax-plan-could-have-a-big-winner-donald-trumps-companies/|title=Donald Trump's new tax plan could have a big winner: Donald Trump's companies|newspaper=Washington Post|access-date=2016-09-15}}{{Cite news|url=https://www.washingtonpost.com/news/wonk/wp/2016/06/01/why-americans-are-giving-up-citizenship-in-record-numbers/|title=Why Americans are giving up citizenship in record numbers|newspaper=Washington Post|access-date=2016-09-15}}{{Cite news|url=https://www.nytimes.com/1988/12/05/business/tax-watch-hidden-ways-to-gain-revenue.html|title=Tax Watch; Hidden Ways To Gain Revenue|last=Rosen|first=Jan M.|date=1988-12-05|newspaper=The New York Times|issn=0362-4331|access-date=2016-09-15}}{{Cite news|url=https://www.nytimes.com/2001/02/04/business/on-the-contrary-how-new-campaign-laws-would-help-the-economy.html|title=ON THE CONTRARY; How New Campaign Laws Would Help the Economy|last=Akst|first=Daniel|date=2001-02-04|newspaper=The New York Times|issn=0362-4331|access-date=2016-09-15}}{{Cite news|url=https://www.nytimes.com/2010/02/26/us/26cnctaxes.html|title=Looking to Taxes as Solution to a Crisis|last=O'shea|first=James|date=2010-02-26|newspaper=The New York Times|issn=0362-4331|access-date=2016-09-15}}{{Cite news|url=https://www.nytimes.com/2014/07/21/nyregion/wealthier-new-yorkers-arent-fleeing-the-city-for-tax-havens-a-study-says.html|title=Wealthier New Yorkers Aren't Fleeing the City for Tax Havens, a Study Says|last=Roberts|first=Sam|date=2014-07-20|newspaper=The New York Times|issn=0362-4331|access-date=2016-09-15}}{{Cite news|url=https://www.wsj.com/articles/the-partisan-tax-policy-center-1457132750|title=The Partisan Tax Policy Center|last1=Sumerlin|first1=Marc|date=2016-03-04|last2=Williams|first2=Noah|newspaper=Wall Street Journal|issn=0099-9660|access-date=2016-09-15}}{{Cite web|url=https://www.theatlantic.com/business/archive/2016/09/trump-economic-policy-math/500258/|title=Trump's Latest Economic Plan: New Promises, Same Old Problems|last=White|first=Gillian B.|website=The Atlantic|language=en-US|access-date=2016-09-15|date=September 15, 2016}} and is also described as business-friendly, conservative, and center-right.{{Cite web|url=http://www.politico.com/tipsheets/morning-tax/2016/07/trumps-tax-pitch-215476|title=Trump's tax pitch|website=POLITICO|date=July 22, 2016 |access-date=2016-09-15}}{{cite news|last1=Barro|first1=Josh|title=Fact-Checking Republicans on Tax Plans|url=https://www.nytimes.com/2015/10/30/upshot/fact-checking-republicans-on-tax-plans.html?_r=0|access-date=15 September 2016|newspaper=New York Times|date=October 29, 2015}}{{cite news|last1=Sloan|first1=Allan|title=The whopping $1.2 trillion omission in Trump's tax reform plan|url=https://www.washingtonpost.com/business/economy/the-whopping-12-trillion-omission-in-trumps-tax-reform-plan/2016/08/17/b01e7afe-6484-11e6-96c0-37533479f3f5_story.html|access-date=15 September 2016|newspaper=Washington Post|date=August 17, 2016}}{{Cite web|url=https://www.washingtonexaminer.com/news/biden-tax-hikes-would-undercut-his-made-in-america-plan-economists-warn|title=Biden tax hikes would undercut his 'Made in America' plan, economists warn|date=October 19, 2020}}

As of 2023, the organization's board of directors consists of David P. Lewis (chairman), James W. Lintott (treasurer), Bill Archer, Philip English, Dennis Groth, Douglas Holtz-Eakin, Stephen Kranz, Sarah McGill, Pamela F. Olson, and Tom Roesser.{{cite web|url=https://taxfoundation.org/board/|title=Meet Our Board|publisher=Tax Foundation|access-date=2023-05-09}}

The Tax Foundation accepts grants from foundations, corporations, and individuals. It does not solicit or accept funds from government sources.{{cite web|url=https://taxfoundation.org/financials/|title=Financials|publisher=Tax Foundation|access-date=2017-02-15}} The Tax Foundation has earned a 3 out of 4 star financial rating and 4 out of 4 star accountability and transparency rating from Charity Navigator.{{cite web|url=http://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=11291#.U1gzXfldWSo|title=Charity Navigator Rating – Tax Foundation|access-date=2015-04-09}}

The Tax Foundation publishes several major studies, including Options for Reforming America's Tax Code, which details the economic and revenue impact of over 80 potential changes to the U.S. tax code.{{cite report |date=2016-06-06 |title=Options for Reforming America's Tax Code |url=https://taxfoundation.org/options-reforming-americas-tax-code/ |publisher=Tax Foundation |access-date=2019-02-20}}

The group uses its Taxes and Growth (TAG) macroeconomic model to simulate the effects of tax policies and produce conventional and dynamic estimates of potential changes in revenue, GDP, wages, employment, and the distribution of the federal tax burden.{{cite web |date=2018-09-06|title=Written Testimony of Scott Hodge President of the Tax Foundation Before the Joint Economic Committee: The Positive Economic Growth Effects of the Tax Cuts and Jobs Act|url=https://www.jec.senate.gov/public/_cache/files/86eb6c11-4bd6-4530-9c6e-335ae534d766/180906hodge.pdf |page=5 |access-date=2019-02-20}} The TAG model is a "neoclassical, comparative-statics economic model coupled with a tax return simulator".{{cite journal |date=December 2017 |title=Macroeconomic Modeling of Tax Policy: A Comparison of Current Methodologies |last1=Auerbach |first1=Alan |last2=Brinberg |first2=Itai |journal=National Tax Journal |volume=70 |issue=4 |pages=819–836 |url=https://scholarship.law.georgetown.edu/cgi/viewcontent.cgi?article=3030&context=facpub |format=PDF |access-date=2019-02-20|doi=10.17310/ntj.2017.4.06 |s2cid=158196589 |url-access=subscription }} The economic model estimates supply of labor and cost of capital based on marginal tax rates calculated by the tax return simulator.

Since 2014, the TAG model has been used to analyze legislative and campaign tax proposals, including the Tax Reform Act of 2014 proposed by Dave Camp,{{cite web |date=2014-07-30 |title=Written Testimony of Scott A. Hodge, President, Tax Foundation: Dynamic Analysis of the Tax Reform Act of 2014 Before the U.S. House of Representatives Committee on Ways and Means, Subcommittee on Select Revenue Measures |last=Hodge |first=Scott |url=https://docs.house.gov/meetings/WM/WM05/20140730/102578/HHRG-113-WM05-Wstate-HodgeS-20140730.pdf |access-date=2019-02-20}} plans put forth during the 2016 presidential campaigns,{{cite web |date=2015-10-30 |title=The pluses and minuses in Ted Cruz's tax plan |last=Rubin |first=Jennifer |newspaper=The Washington Post |url=https://www.washingtonpost.com/blogs/right-turn/wp/2015/10/30/the-pluses-and-minuses-in-ted-cruzs-tax-plan/ |access-date=2019-02-20}}{{cite web |date=2015-10-29 |title=Fact-Checking Republicans on Tax Plans |last=Barro |first=Josh |website=The Upshot |publisher=The New York Times |url=https://www.nytimes.com/2015/10/30/upshot/fact-checking-republicans-on-tax-plans.html |access-date=2019-02-20}} the House GOP's 2016 tax reform blueprint,{{cite web |date=2016-11-15 |title=House Republicans Aim to Cut Taxes Without Increasing Deficits |last=Rubin |first=Richard |newspaper=The Wall Street Journal |url=https://www.wsj.com/articles/house-republicans-aim-to-cut-taxes-without-increasing-deficits-1479222977 |access-date=2019-02-20}} and the Tax Cuts and Jobs Act.{{cite web |date=2017-11-26 |newspaper=The Wall Street Journal |url=https://www.wsj.com/articles/tax-reform-growth-and-the-deficit-1511730170 |access-date=2019-02-20 |title=Tax Reform, Growth and the Deficit }}{{cite web |date=2017-11-09 |title=House GOP Tax Plan Is Little Help To High-Tax States Like New Jersey |website=NPR |url=https://www.npr.org/2017/11/09/562960732/house-gop-tax-plan-is-little-help-to-high-tax-states-like-new-jersey |access-date=2019-02-20}}

Since 2013, the Tax Foundation has offered guidance to same-sex married couples filing income taxes at the state level, where local laws recognizing same-sex marriage can vary considerably.{{cite web|url=https://taxfoundation.org/wisconsin-offers-constructive-tax-filing-guidance-same-sex-couples|title=Wisconsin Offers Constructive Tax Filing Guidance for Same-Sex Couples|first=Joseph|date=2013-09-13|publisher=Tax Foundation|last=Henchman|access-date=2017-02-15}}{{cite web|url=https://taxfoundation.org/10-remaining-states-provide-tax-filing-guidance-same-sex-married-taxpayers|title=10 Remaining States Provide Tax Filing Guidance to Same-Sex Married Taxpayers|first=Joseph|date=2015-03-20|publisher=Tax Foundation|last=Henchman|access-date=2017-02-15}}

Every year, the Tax Foundation calculates and announces Tax Freedom Days in the United States. These studies have been criticized by the Center on Budget and Policy Priorities (CBPP), a progressive think tank, and in turn the Tax Foundation has responded to or criticized CBPP reports.{{cite book|last1=Brooks|first1=Neil|title=Tax Freedom Day: A Flawed, Incoherent and Pernicious Concept|date=2005|publisher=Canadian Center for Public Policy Alternatives|isbn=9780886274382|page=26}}{{cite news|last1=Brunori|first1=David|title=Why Tax Freedom Day Matters|url=https://www.forbes.com/sites/taxanalysts/2016/04/24/why-tax-freedom-day-matters/#2b8d819b3223|access-date=16 September 2016|work=Forbes|date=April 24, 2016}}{{cite news|title="Tax Freedom Day" Analysis Can Give a Misleading Impression of Tax Burdens|url=http://www.cbpp.org/blog/tax-freedom-day-analysis-can-give-a-misleading-impression-of-tax-burdens-0|access-date=16 September 2016|publisher=Center on Budget and Policy Priorities|date=April 8, 2014}}{{cite news|url=https://taxfoundation.org/press-release/analysis-shows-center-budget-and-policy-priorities-criticism-tax-freedom-day-flawed-and-inaccurate/|title=Analysis Shows Center on Budget and Policy Priorities' Criticism of Tax Freedom Day Flawed and Inaccurate|date=March 30, 2006|publisher=Tax Foundation|last1=Ahern|first1=William|access-date=2017-02-15}} However, the two groups have worked together on analysis of the marriage penalty in the US federal income tax.{{cite web|url=https://www.nytimes.com/interactive/2015/04/16/upshot/marriage-penalty-couples-income.html | title=Tax Day: Are You Receiving a Marriage Penalty or Bonus? |work=The New York Times |date=April 15, 2015 |access-date=September 5, 2015}}

The Tax Foundation praised the Tax Cuts and Jobs Act of 2017 as a "pro-growth" tax plan, citing GDP and job growth.{{cite web |title=Updated Details and Analysis of the 2017 House Tax Cuts and Jobs Act |url=https://taxfoundation.org/research/all/federal/2017-tax-cuts-jobs-act-analysis/ |website=Tax Foundation |access-date=4 December 2024 |date=November 3, 2017}} However, the Foundation has been a vocal critic of the Trump administration's trade policies, particularly tariffs.{{Cite web |last=York |first=Erica |date=2023-07-07 |title=Tracking the Economic Impact of Tariffs |url=https://taxfoundation.org/fr/research/all/federal/tariffs-trump-trade-war/ |access-date=2024-01-31 |website=Tax Foundation |language=fr-FR}}

In a column for The New York Times blog The Upshot, Josh Barro, a former Tax Foundation employee, criticized the group's approach to scoring the Rubio{{ndash}}Lee tax plan as producing "implausibly rosy results".{{cite web |date=2015-03-17 |title=Tax Cuts Still Don't Pay for Themselves |last=Barro |first=Josh |website=The Upshot |publisher=The New York Times |url=https://www.nytimes.com/2015/03/17/upshot/tax-cuts-still-dont-pay-for-themselves.html |access-date=2019-02-20}} The Tax Foundation published a response to these criticisms, stating that their model results were "in line with analysis done by other mainstream economists for similar tax changes".{{cite web |date=2015-03-17 |title=A Response to Josh Barro on Dynamic Scoring |last1=Hodge |first1=Scott |last2=Lundeen |first2=Andrew |website=Tax Foundation |url=https://taxfoundation.org/response-josh-barro-dynamic-scoring/ |access-date=2019-02-20}}

In opinion editorials for the New York Times, economist Paul Krugman has characterized the Tax Foundation as "not a reliable source" while criticizing a report by the Tax Foundation comparing corporate tax rates in the United States to those in other countries.{{cite web |url= https://krugman.blogs.nytimes.com/2008/08/24/the-tax-foundation-is-not-a-reliable-source/ |title=The Tax Foundation is not a reliable source |first=Paul |last=Krugman |work=The Conscience of a Liberal blog, nytimes.com |date=2008-08-24 |access-date=March 18, 2011}} Krugman has also accused the Tax Foundation of "deliberate fraud" in connection with a report it issued concerning the American Jobs Act.{{cite web|url=https://krugman.blogs.nytimes.com/2011/10/11/stocks-flows-and-fuzzy-math/ |title=Stocks, Flows, and Fuzzy Math |publisher=Krugman.blogs.nytimes.com |date=October 11, 2011 |access-date=October 17, 2011}} The Tax Foundation has published various responses to Krugman's criticisms.{{cite news|url=https://taxfoundation.org/grasping-straws-response-paul-krugman|title=Grasping at Straws: A Response to Paul Krugman|date=July 26, 2012|publisher=Tax Foundation|last1=McBride|first1=William|access-date=2017-02-15}}{{cite news|url=https://taxfoundation.org/response-paul-krugman-millionaire-taxes|title=Response to Paul Krugman on "Millionaire" Taxes|date=October 11, 2011|publisher=Tax Foundation|last1=Hodge|first1=Scott|access-date=2017-02-15}}

• Americans For Fair Taxation
• Americans for Tax Reform
• Citizens for Tax Justice
• Council on State Taxation
• Institute on Taxation and Economic Policy
• National Taxpayers Union
• Tax Policy Center
• Tax Justice Network

{{Reflist|colwidth=30em}}

• {{Official website|https://taxfoundation.org}}
• [http://nccsweb.urban.org/communityplatform/nccs/organization/profile/id/521703065/popup/1 Organizational Profile] – National Center for Charitable Statistics (Urban Institute)

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Category:Nonpartisan organizations in the United States

Category:Political and economic think tanks in the United States

Category:Think tanks based in Washington, D.C.

Category:Tax reform in the United States

Category:Non-profit organizations based in Washington, D.C.

Category:Organizations established in 1937

Category:1937 establishments in the United States

Category:501(c)(3) organizations