Tax Policy Center

03/05/2025

What are tariffs, and who pays them? Read up on tariffs here:

How Do Tariffs Work? Display Date December 16, 2024 Tariffs—taxes on specific imported goods—aim to correct or maintain a trade balance between countries.   When the US imposes a tariff on an imported good, the company importing the good pays the tariff, or tax. This tax can be a percentage of...

03/05/2025

While extending the expiring provisions of the TCJA would modestly boost the economy, it would come nowhere near offsetting the full cost. https://tpc.io/4jPL8Bg

03/05/2025

25% tariffs on Mexican and Canadian imports have taken effect. TPC estimates that doing so could lower the average US household's after-tax income by $930 per year.

T25-0014 – Impose 25 Percent Tariffs on Imported Goods from Canada and Mexico, Distribution by ECI Percentile, 2026 (328 KB) Display Date January 31, 2025 Table shows the change in the distribution of federal taxes, by expanded cash income percentile in 2026, of a proposal to impose a 25 percent t...

03/04/2025

25% tariffs on Mexican and Canadian imports have taken effect. TPC estimates that doing so could lower the average US household's after-tax income by $930 per year.

T25-0014 – Impose 25 Percent Tariffs on Imported Goods from Canada and Mexico, Distribution by ECI Percentile, 2026 (328 KB) Display Date January 31, 2025 Table shows the change in the distribution of federal taxes, by expanded cash income percentile in 2026, of a proposal to impose a 25 percent t...

03/04/2025

As Congress considers renewing the TCJA, they are unlikely to undo all the rate cuts included in the original.

But what if instead Congress allowed only the top individual income tax rate to return to its pre-TCJA level, as currently scheduled for 2026? https://tpc.io/43eipk4

03/04/2025

New IRS employees improve taxpayer service and tax administration, delivering tangible benefits for taxpayers and the nation’s financial well-being. Dismissing them would be a severe setback for the IRS. https://tpc.io/3Xci2lU

03/04/2025

The Tax Policy Center has modeled the effects of 25% tariffs on Canada and Mexico and an additional 10% tariff on all goods imported from China.

Impose Additional Tariffs on Imported Goods From China, Canada, and Mexico (February 2025) February 7, 2025 Description Tables shows the impact on federal tax revenue and distribution of tax burden (by ECI level and ECI percentile) of additional 10 percent tariffs on all goods imported from China an...

03/03/2025

President Trump today confirmed he plans to move forward with imposing 25% tariffs on Mexican and Canadian imports. TPC estimates that doing so could lower the average US household's after-tax income by $930 per year. https://taxpolicycenter.org/model-estimates/t25-0014-impose-25-percent-tariffs-imported-goods-canada-and-mexico-distribution