Tax Foundation

Tax Foundation

File:Tax-Foundation-logo.png
Motto	Educating Taxpayers Since 1937
Formation	1937
Type	Think tank
Headquarters	1325 G Street NW, Suite 950
Location	Washington, D.C., United States
President	Scott A. Hodge
Website	www.taxfoundation.org

The Tax Foundation is a Washington, D.C.-based think tank founded in 1937 that collects data and publishes research studies on US tax policies at both the federal and state levels. The Foundation's stated mission is to "educate taxpayers about sound tax policy and the size of the tax burden borne by Americans at all levels of government." The Tax Foundation is organized as 501(c)(3) tax-exempt non-profit educational and research organization. Although it describes itself as a nonpartisan tax research group, it has been described as pro-business and conservative-leaning and has ties to various US conservative groups.

The organization is organized into three primary areas of research, carried out by the Foundation's Center for Federal Fiscal Policy, the Center for State Fiscal Policy and the Center for Legal Reform. The group is known for its annual reports such as "Facts & Figures: How Does Your State Compare" which was first produced in 1941 and Tax Freedom Day for the United States, which it has produced since the early 1970s.

Goals and principles

Tax Foundation states that their research is guided by what they call the principles of sound tax policy: simplicity, transparency, neutrality, stability, no retroactivity, broad bases and low rates.

Tax Foundation research is generally critical of tax increases, high business taxes, excise taxes, tax preferences for the housing industry, and use of the tax credits (which the Foundation views as "picking winners and losers"). The Foundation have spoken favorably of efforts to balance the federal budget with tax reform and significant spending cuts, such as the Bowles-Simpson plan, the Ryan Plan, and the Wyden-Coats plan.

Activities

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.

History

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. The stated goal of the organization was "to monitor the tax and spending policies of government agencies". 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. By July 1991, the Tax Foundation was again operating as an independent 501(c)(3) organization.

Beginning in 2009, The Tax Foundation's offices were located in the National Press Building in Washington, D.C. In 2015, the Tax Foundation left the National Press Building.

Board of directors

Name	Term	Other Affiliations
Ongoing Directors:
David P. Lewis, Chairman	2009–current	Eli Lilly & Co, Vice President Global Taxes; Tax Council Policy Institute, Treasurer
James Lintott	pre-1999–current	Sterling Foundation Management
Bill Archer	2003–current	former member of the United States House of Representatives from Texas
Philip English	current	former member of the United States House of Representatives from Pennsylvania
Douglas Holtz-Eakin	2009–current	President of the American Action Forum, former Director of the Congressional Budget Office, chief economic adviser to Presidential candidate John McCain in 2008
Stephen Kranz	current	partner at McDermott Will & Emery
Sarah McGill	2009–current	Pepsico, VP Tax Planning
Pamela F. Olson	2009–current	Deputy Tax Leader at PwC; formerly at Skadden, Arps; senior economic adviser to the Bush-Cheney campaign and formerly Assistant Secretary of Treasury for Tax Policy under Pres. Bush
Tom Roesser	current	Microsoft, Senior Director of Tax Affairs
Former Directors (post-1990):
Wayne E. Gable	pre-1999–2008	Koch Industries Dir. of Federal Affairs, Citizens for a Sound Economy, Americans for Prosperity
James C. Miller III	1989–2005	Citizens for a Sound Economy; Director of OMB under President Reagan
Joseph O. Luby, Jr.	2000–2006	Exxon Mobil, VP Tax
James Q. Riordan	pre-1989–1999	Mobil, VP Tax
R. Glenn Hubbard	2003–2008	Chairman of President Bush's Council of Economic Advisers
Michael P. Boyle	2002–2006	Microsoft, VP Finance

Funding

The Tax Foundation accepts grants from foundations, corporations, and individuals. It does not solicit or accept funds from government sources. 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.

Year	Revenues	Expenses
2013	$2,953,060	$2,469,668
2012	$2,192,620	$1,900,821
2011	$1,885,201	$1,768,828
2010	$1,854,135	$1,925,936

The Tax Foundation has received funding from ExxonMobil and from conservative political groups such as the Koch Family Foundations, the Earhart Foundation, and Citizens for a Sound Economy.

Criticisms

The Tax Foundation's annual study that calculate Tax Freedom Days in the United States has been criticized by left-leaning think tanks, such as the Center on Budget and Policy Priorities (CBPP) and Citizens for Tax Justice (CTJ), citing repeated "methodological errors" and "reliance on early projections without hard data." CBPP has also criticized other reports by the Tax Foundation, and in turn the Tax Foundation has responded or criticized CBPP reports. The two groups have some areas of agreement, such as opposition to most tax expenditures and sales tax holidays. The Tax Foundation and CBPP have also worked together on analysis of the marriage penalty in the US federal income tax.

US economist Paul Krugman has characterised 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. Krugman has also accused the Tax Foundation of "deliberate fraud" in connection with a report it issued concerning the American Jobs Act.

See also

• Americans For Fair Taxation
• Americans for Tax Reform
• Brookings Institution
• Cato Institute
• Center on Budget and Policy Priorities
• Citizens for Tax Justice
• Heritage Foundation
• Koch Family Foundations
• National Taxpayers Union
• Tax Policy Center
• Urban Institute

External links

• Tax Foundation website
• Organizational Profile – National Center for Charitable Statistics (Urban Institute)
• Annual report Forms 990 filed by Tax Foundation
• Sterling Foundation Management, LLC

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• http://www.cbpp.org/cms/index.cfm?fa=view&id=1369