There is growing empirical evidence showing that taxes encourage use of debt in large profitable firms and discourage it in less profitable firms. There has been debate, though, on the source of any non-tax costs from debt finance offsetting the tax advantages of debt. This paper lays out...

Summarizes tax differences and explores their implications for the nature of cross-border activity that will develop between the United States and Mexico.

Employs analytical and numerical general equilibrium models to evaluate environmentally motivated tax policies, concentrating on whether the gross costs of these policies can be eliminated when revenues from the taxes are devoted to cuts in marginal income tax rates.

Surveys how tax policy affects the level and allocation of national saving in the U.S. Argues that the effect of taxes on the overall private saving level is relatively small and uncertain and that raising public saving is the most direct and efficient way to raise national saving.