Chen, Kaiji; İmrohoroğlu, Ayşe - 2014 - This Version: May 2013
neoclassical growth model to examine the future path of output, budget deficits, and debt in the U.S. economy under different tax … policies. While this framework is relatively simple, it incorporates the general equilibrium effects of tax policy, which are … projections. We also find that labor income tax rates higher than 40% are needed for the deficit-to-GNP ratio to return to its …
