Diaz-Gimenez, Javier; Pijoan-Mas, Josep - Society for Computational Economics - SCE - 2006
We use a version of the neoclassical growth model economy to evaluate two revenue neutral flat-tax reforms. In the less progressive flat-tax reform the households face a 22 percent integrated flat tax and a labor income tax exemption of \$16,000 per household. In the more progressive flat-tax...