The Bush administration is said to be considering several new tax cuts, including increasing the deductible amount of capital losses, reducing capital gains tax rates, indexing capital gains for inflation, raising contribution limits for IRAs and 401(k)s, and reducing taxes on dividends. This...

This paper examines how changes to the individual income tax affect long-term economic growth. The structure and financing of a tax change are critical to achieving economic growth. Tax rate cuts may encourage individuals to work, save, and invest, but if the tax cuts are not financed by...