Horizontal equity across families has played little role in forming tax policy. Using an index to equate different families, the earned income credit (EIC) is shown to create dramatic effective tax rate differentials at low incomes, favoring families with two children. In the middle, the child...

Examines a broad range of reduced-form and intertemporal models in which each model is calibrated to generate the same initial economy, which allows the authors to focus on model features without concern that initial differences in calibration are determined.

Briefly discusses U.S. taxes and trade performance in regard to the Tax Reform Act of 1986.

The tobacco settlement does not appear to achieve the efficiency objectives of a liability suit, even though it derives from an agreement between the industry and plaintiffs. There is no change in the product, information on hazards is widely available, payments are not made in lump sums because...

Identifies and analyzes issues in the modern corporate income tax debate: who pays corporate tax; does it play a role in progressivity of the tax system; are distortions linked to the tax significant relative to its yield; and how can the tax be replaced?

Dividend relief was proposed for economic stimulus and growth, but is unlikely to be an effective stimulus because much of the tax benefit may be saved. Nor is it likely to affect demand independently through a rise in the stock market: these values only affect pending of stockholders (through...

Focuses on recent proposals to reinstate an investment credit directed at equipment. Discusses arguments based on countercyclical reasons that favor temporary credits or a permanent subsidy.

In the 15 years since the depreciation rules were calculated to approximate economic depreciation for structures and equipment, that neutrality (using a constant set of economic depreciation estimates) has been somewhat undermined by a relatively more favorable treatment of equipment due to...

The federal government loses both individual and corporate income tax revenue from the shifting of profits and income into low-tax countries, often referred to as tax havens. Tax havens are located around the world with concentrations in the Caribbean and Europe. Corporate profit shifting may...

Reviews Taxing Ourselves: A Citizen's Guide to the Great Debate Over Tax Reform.