In this paper, the authors evaluate the impact of the Tax Reform Act of 1986 on U.S. economic growth. The authors first calculate effective tax rates on income from capital employed in corporate, noncorporate, and household sectors.They then project the future growth of the U.S. economy with and...

In this chapter we present a dynamic general equilibrium methodology for evaluating alternative proposals for tax reform. We illustrate this methodology by comparing alternative proposals that would remove barriers to efficient allocation of capital and labor inputs. These proposals are based on...

In this chapter we present a dynamic general equilibrium methodology for evaluating alternative proposals for tax reform. We illustrate this methodology by comparing alternative proposals that would remove barriers to efficient allocation of capital and labor inputs. These proposals are based on...