In this article, the authors argue that instead of focusing on the child tax credit that has received so much attention recently, reformers should shift their attention back to the earned income tax credit (EITC) and press for three simple changes that would support work and marriage: Reduce the...

Perhaps the most serious ethical and political obstacle to converting an income tax to a consumption tax is that older persons who have accumulated wealth after paying income tax will be taxed again under the new consumption tax if they spend down their wealth. A crucial question that arises is...

It has been recognized that conversion of an income tax to a consumption tax can increase aggregate saving even if each household maintains a constant propensity to save. The reason is heterogeneity: the variation in the propensity to save among households. How much of an increase in saving is...

This article recommends a tax reform strategy that can accomplish three objectives: (1) raise sufficient revenue to deal with long run budget challenges; (2) promote long run economic growth; (3) provide progressivity in the face of increasing inequality. The strategy for overcoming this fiscal...