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While the U.S. tax system is progressive, the distribution of government spending makes the overall fiscal system more progressive than is apparent from tax distributions alone. Using a microdata model we estimate the distribution of federal, state and local taxes and spending between 1991 and...
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The challenges states face in reducing government expenditures under certain budget constraints are putting pressure on states to increase their revenues. Given that taxation also has a limit, the importance of non-tax revenues (NTR) in financing growing government expenditures increases day by...
Persistent link: https://www.econbiz.de/10013368729
For more than 25 years, the Social Security Trust Fund has been projected to run out of money in 2033 (give or take a few years), potentially causing benefits to be severely reduced in the absence of corrective legislative action. Today (February 2024), projections are made by the Social...
Persistent link: https://www.econbiz.de/10014480253
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stationarity in the total government deficit series or testing for linear cointegration between total government spending and total … linear cointegration relationship between the government spending to output ratio and the total tax revenues to output ratio …. Estimation results show that government authorities react only to large (in absolute value) changes in the government spending to …
Persistent link: https://www.econbiz.de/10014062701
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This paper starts off explaining the arguments put forward to defend the need to reduce the State’s budgetary activity and minimize fiscal deficit in accordance with the institutionalized consensus reached under the Maastricht Treaty and the Stability and Growth Pact. Secondly, it sheds light...
Persistent link: https://www.econbiz.de/10010751611
In a dynamic model of fiscal policy, social polarization provokes a deficit bias. Policy advisors have recently proposed that governments running a deficit should be forced to generate additional tax revenue. We show that this deficit taxation reduces the deficit bias as it internalizes the...
Persistent link: https://www.econbiz.de/10012991131
The use of large fiscal stimulus packages to dampen the impact of Covid-19 recently has raised concerns about the effectiveness of the discretionary fiscal policy. This paper aims at analysing the feasibility of automatic fiscal stabilisers to mitigate economic fluctuations in the case of...
Persistent link: https://www.econbiz.de/10013174018