Tax reforms are sometimes touted to have strong macroeconomic growth effects. We consider the impact of a major tax reform on the long-term growth rates of the U.S. economy using three approaches. The first approach is to examine the historical record of the U.S. economy to evaluate whether tax...

Frequent shifts in tax policy can increase uncertainty about futurenet-of-tax wages and interest income. This paper measures the impact ofuncertain tax policy on savings, labor supply, and welfare in the UnitedStates. A vector autoregression model with six variables was estimatedwhich found the...

Housing assets comprise nearly one-third of household wealth rot effectively escape income taxation. When housing is included in the life cycle model, the capital income tax is shown to be far more distortionary than previously thought. The reason is that capital income taxation stimulates the...