The report examines tax policy uncertainty, noting that academic literature on tax uncertainty has failed to address so-called rent seeking. The authors build on the work of Baumol (1990), who contends that it is not just the degree of entrepreneurship that is central to economic growth but also...

The U.S. faces tremendous short-term policy uncertainty, including about $5.4 trillion in tax increases over the next decade. These changes are set to take effect on January 1, 2013. It is unlikely that these changes will fully materialize, but what will happen is anyone's guess. Over the long...