The federal government's reluctance to set out a strategy for long-term debt reduction likely arises from disagreements about how rapidly to reduce debt, how rigidly to translate the long-term debt reduction path into annual fiscal targets, and how to balance new spending and tax cuts. We try to...

The federal government has implemented an earned income tax credit--what it has called the Working Income Tax Benefit--in the 2007 Budget. Edmund Phelps argued that the earned income tax credit in the United States should be replaced with an employment subsidy. This paper assesses the importance...