2026-07-295brief

Tax Foundation models the tradeoffs in 86 tax reforms

The guide puts a price and modeled economic effect on 86 federal tax changes relative to current law. One example: it estimates cutting the top income-tax rate from 37% to 35% would add $625.3 billion to the 2027–36 primary deficit while raising long-run GDP 0.2%; raising it to 50% would reduce the deficit by $1.60 trillion before economic feedback, but by only $411.2 billion after the model accounts for weaker growth, with long-run GDP down 1.4%.