This paper derives standardized measures of labor and capital income that account for the different reporting requirements and incentives faced by different forms of organization. This facilitates estimating how much capital income is subject to employment taxes and how much labor income escapes...

There has been considerable recent interest in reducing the corporate tax rate. As a first step toward analyzing the macroeconomic consequences of such a reform, we consider a rate reduction from the current statutory rate of 35 to 30 percent. We present the results under differing assumptions...

Examines the combined effects of fiscal and monetary policy on tax reform. Explores how tax reform affects the central bank's ability to implement monetary policy; and, in turn, how central bank response to tax reform affects the economics of tax reform.

We show that, for both individuals and corporations, there is an aggregate overhang of realized losses that can be expected to have persistent effects. At the taxpayer level, we use panel data to show that the transition probabilities between taxpayers' states of capital realizations—losses,...

We model an empirically estimated fiscal policy reaction function (FPRF) in a macroeconomic growth model. In general, an FPRF uses information about the path of past and expected future macroeconomic events and fiscal policy to forecast future fiscal policy reactions. We show that an empirically...