Marketplace The erosion of the American tax base
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May 7, 2026 
Annie Lowrey, staff writer at The Atlantic who covers economic and public policy, breaks down how recent tax cuts and corporate avoidance are shrinking the U.S. tax base. She discusses what that means for federal and state revenue. Short takes cover implications for public works, growing fiscal pressure, and political incentives around future tax policy.
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Shrinking Federal Tax Base Threatens Future Spending
- U.S. tax cuts and corporate avoidance are eroding the federal revenue base.
- The GOP law cut taxes for 85% of households while 88 large corporations paid no federal income tax, shrinking who funds government spending.
Both Parties Made The Tax Code More Fragile
- Both parties abandoned base-broadening for targeted cuts and credits, making the tax code more complex and less reliable.
- Annie Lowrey cites Trump's 2nd-term law and Democratic expansion of tax credits as drivers of complexity and revenue loss.
Tax Revolts Are Spreading From Local To National
- Voter movements against specific taxes (like property taxes) have cascaded into broader tax resistance.
- Lowrey points to multiyear property tax revolts and targeted exemptions as part of a growing anti-tax trend.