Discussion of how international trade and investment affect the efficiency and distributional effects of tax policy. Considers impact of GATT on U.S. industry; links between tax policies, wage, and skill differentials; and argues for policies that promoting productivity growth.

This study uses a sample of individual municipal bonds to estimate the effect of state exemption of municipal bond interest income on the yield to maturity offered by public issuers to finance their debt. A state by state comparison of interest savings to estimated revenue loss on a hypothetical...