Founded in 1937 by businessmen reacting to the rising federal spending of Franklin D. Roosevelt’s New Deal, the Tax Foundation says it favors a tax system that “should consume as small a portion of national income as possible, and should not interfere with economic growth, trade or capital flows.” The group does not disclose its donors, but a spokesman says “the majority [of funds] is from the tax departments of major corporations,” with some money also coming from individuals and foundations.
The Tax Foundation is best known for its annual (and legally trademarked) “Tax Freedom Day.” This attempts to pinpoint “the day when Americans will finally have earned enough money to pay off their total tax bill for the year.” Within its analysis of state taxes, the group also issues an annual study attempting to calculate how much each state pays in federal taxes and receives in federal spending.
