Download or read book Short Run Macroeconomic Effects of Fundamental Tax Reform written by Jane Gravelle and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Short Run Macroeconomic Effects of Fundamental Tax Reform written by Jane Gravelle and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Short Run Macroeconomic Effects of Fundamental Tax Reform written by and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report discusses the short-run effects on output and prices from the imposition of different forms of fundamental tax reform, including the value-added tax, the retail sales tax, and the flat tax. By: Jane G. Gravelle Senior Specialist in Economic Policy.
Download or read book Short Run Macroeconomic Effects of Fundamental Tax Reform Record No written by Gravelle and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Effects of Fundamental Tax Reform written by Henry Aaron and published by Brookings Institution Press. This book was released on 2010-12-01 with total page 544 pages. Available in PDF, EPUB and Kindle. Book excerpt: The tax system profoundly affects countless aspects of private behavior. It is a powerful policy influence on the distribution of income and it is the one aspect of government that almost every citizen cannot avoid. With tax reform high on the political agenda, this book brings together studies of leading tax economists and lawyers to assess the various reform proposals and examine the effects of tax reform in several distinct areas. Together, these studies and comments on them present a balanced evaluation of professional opinion on the issues that will be critical in the tax reform debate. The book addresses annual and lifetime distributional effects, saving, investment, transitional problems, simplification, home ownership and housing prices, charitable groups, international taxation, financial intermediaries and insurance, labor supply, and health insurance. In addition to Henry Aaron and William Gale, the contributors include Alan Auerbach, University of California, Berkeley; David Bradford, Princeton University; Charles Clotfelter, Duke University; Eric Engen, Federal Reserve; Don Fullerton, University of Texas; Jon Gruber, Massachusetts Institute of Technology; Patric Hendershott, Ohio State; David Ling, University of Florida; Ronald Perlman, Covington & Burling; Diane Lim Rogers, Congressional Budget Office; John Karl Scholz, University of Wisconsin; Joel Slemrod, University of Michigan; and Robert Triest, University of California, Davis.
Download or read book The Economic Effects of Comprehensive Tax Reform written by and published by Congress. This book was released on 1997 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: I. Introduction -- II. Recent tax reform proposals -- III. Effects on the macroeconomy -- IV. Effects on the allocation of resources -- V. Effects on economic efficiency -- Appendix A. What will a consumption-based tax do to the price level and the value of existing assets? -- Appendix B. Simulation models and the saving response -- Appendix C. Fullerton-Rogers General-equilibrium model.
Download or read book Corporate Tax Reform From Income to Cash Flow Taxes written by Benjamin Carton and published by International Monetary Fund. This book was released on 2019-01-16 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses a multi-region, forward-looking, DSGE model to estimate the macroeconomic impact of a tax reform that replaces a corporate income tax (CIT) with a destination-based cash-flow tax (DBCFT). Two key channels are at play. The first channel is the shift from an income tax to a cash-flow tax. This channel induces the corporate sector to invest more, boosting long-run potential output, GDP and consumption, but crowding out consumption in the short run as households save to build up the capital stock. The second channel is the shift from a taxable base that comprises domestic and foreign revenues, to one where only domestic revenues enter. This leads to an appreciation of the currency to offset the competitiveness boost afforded by the tax and maintain domestic investment-saving equilibrium. The paper demonstrates that spillover effects from the tax reform are positive in the long run as other countries’ exports benefit from additional investment in the country undertaking the reform and other countries’ domestic demand benefits from improved terms of trade. The paper also shows that there are substantial benefits when all countries undertake the reform. Finally, the paper demonstrates that in the presence of financial frictions, corporate debt declines under the tax reform as firms are no longer able to deduct interest expenses from their profits. In this case, the tax shifting results in an increase in the corporate risk premia, a near-term decline in output, and a smaller long-run increase in GDP.
Download or read book Macroeconomic Effects of Tax Rate and Base Changes Evidence from Fiscal Consolidations written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2018-09-28 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the macroeconomic effects of tax changes during fiscal consolidations. We build a new narrative dataset of tax changes during fiscal consolidation years, containing detailed information on the expected revenue impact, motivation, and announcement and implementation dates of nearly 2,500 tax measures across 10 OECD countries. We analyze the macroeconomic impact of tax changes, distinguishing between tax rate and tax base changes, and further separating between changes in personal income, corporate income, and value added tax. Our results suggest that base broadening during fiscal consolidations leads to smaller output and employment declines compared to rate hikes, even when distinguishing between tax types.
Download or read book Essays on the Macroeconomic Effects of Taxation written by Sepideh Raei and published by . This book was released on 2018 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is a collection of two essays relating to the dynamic effects of taxation. In the first chapter, I focus on a key challenge faced by tax reforms: their short-run welfare consequences. I examine a consumption-based tax reform that, despite the long-run welfare gains it generates, causes the welfare for some groups such as retirees or the working poor to fall during transition between steady states. Using a life-cycle model with heterogeneous households, I show how to devise a transition path from the current U.S. federal tax system to a consumption-based tax system that improves the welfare of current generations as well as those who are born in the long-run steady state. In a nutshell, all households alive at the time of the policy change can choose when they want to switch to the new tax system, or whether they want to switch at all. I find that implementing a tax reform with this feature improves the welfare of 95% of the population in the short run, compared to less than 25% of population in the conventional case with no choice. It takes about 20 years for half of the population to pay their taxes under the new tax code.In the second chapter, I study the aggregate consequences of the differential tax treatments of U.S. businesses focusing on the role of legal forms of organization. I develop an industry equilibrium model in which the organizational form is an endogenous choice.This model incorporates the key trade-off that businesses face when choosing their legal forms: the tax treatment of the business income; the access to external capital, and the potential level and evolution of productivity over time.The model is matched to the firm dynamic features of U.S. businesses and the contributing share of each legal form in total output. Using the model, I study revenue-neutral tax reforms in which legal forms receive the same tax treatments, and I find that the incentives induced by tax structure for organizational form and external finance are both large. Relative to the benchmark economy, unifying the tax code for all legal forms, can lead to 8% increase in the aggregate output.
Download or read book Fundamental Determinants of the Effects of Fiscal Policy written by Dennis Petrus Johannes Botman and published by International Monetary Fund. This book was released on 2006 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: We explore the underlying determinants of the macroeconomic effects of fiscal policy and tax and social security reform using the Global Fiscal Model (GFM). We show that the planning horizon of consumers, access to financial markets, and the elasticity of labor supply, as well as the characteristics of utility and production functions, and the degree of competition are all critical for determining the impact of fiscal policy. Four topical fiscal policy issues, for a representative large and small economy, are examined: the effects of changes in government debt; higher government spending; tax reform; and privatization of retirement savings.
Download or read book The Political Economy of Tax Reform written by Takatoshi Ito and published by University of Chicago Press. This book was released on 2007-12-01 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rapid emergence of East Asia as an important geopolitical-economic entity has been one of the most visible and striking changes in the international economy in recent years. With that emergence has come an increased need for understanding the problems of interdependence. As a step toward meeting this need, the National Bureau of Economic Research joined with the Korea Development Institute to sponsor this volume, which focuses on the complexities of tax reform in a global economy. Experts from Taiwan, Korea, the Philippines, Japan, and Thailand, as well as the United States, Canada, and Israel examine the major tax programs of the 1980s and their domestic and international economic effects. The analyses reveal similarities between the United States and countries in East Asia in political constraints on policy making, and taken together they show how growing interdependence interacts with domestic economic and political concerns to affect issues as politically vital as tax reform. Economists, policymakers, and members of the business community will benefit from these studies.
Download or read book The Economic Effects of Comprehensive Tax Reform written by and published by . This book was released on 1997 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: A number of recent proposals for fundamental tax reform would replace the current federal income tax system with a comprehensive consumption-based tax. Objectives of tax reform include stimulating economic activity and promoting a more efficient allocation of resources. Many common features of recent proposals could achieve those results-for example, a broader tax base, more uniform rates, and a tax on consumption rather than income. This Congressional Budget Office (CBO) study analyzes the major economic effects of several tax reform plans and finds that much uncertainty surrounds the likelihood and magnitude of the economic gains from tax reform. The study focuses on the effects on saving and investment, output, and the allocation of resources within the economy, as well as the ultimate impacts of those changes on social well-being. The study was prepared at the request of Senators Pete Domenici, Robert Bennett, Joseph Biden, and Robert Kerrey and former Senator Sam Nunn.
Download or read book Economic Effects of Comprehensive Tax Reform written by Diane Lim Rogers and published by . This book was released on 1997-06-01 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: Proposals for fundamental tax reform would replace the current Fed. income tax system with a comprehensive consumption- based tax. Objectives of tax reform include stimulating economic activity and promoting a more efficient allocation of resources. Some common features of recent proposals are a broader tax base, more uniform rates, and a tax on consumption. This study analyzes the major economic effects of several tax reform plans, focusing on the effects on saving and investment, output, and the allocation of resources within the economy, and the ultimate impacts of those changes on social well-being. Charts and tables.
Download or read book Concurrent Resolution on the Budget written by United States. Congress. Senate. Committee on the Budget and published by . This book was released on 1991 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Fiscal Policy and Long Term Growth written by International Monetary Fund and published by International Monetary Fund. This book was released on 2015-04-20 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.
Download or read book Macroeconomic Effects of Capital Tax Rate Changes written by Saroj Bhattarai and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We study aggregate, distributional, and welfare effects of a permanent reduction in the capital tax rate in a dynamic equilibrium model with capital-skill complementarity. Such a tax reform leads to expansionary long-run aggregate effects, but is coupled with an increase in the skill premium. Moreover, the expansionary long-run aggregate effects are smaller when distortionary labor or consumption tax rates have to increase to finance the capital tax rate cut. An extension to a model with heterogeneous households shows that consumption inequality increases in the long-run. We study transition dynamics and show that short-run effects depend critically on the monetary policy response: whether the central bank allows inflation to directly facilitate government debt stabilization and how inertially it raises interest rates. Finally, we contrast the long-term aggregate welfare gains with short-term losses, as well as in the model with heterogeneous households, show that welfare gains for the skilled go together with welfare losses for the unskilled.
Download or read book Tax Policy Leverage and Macroeconomic Stability written by International Monetary Fund. Fiscal Affairs Dept. and published by International Monetary Fund. This book was released on 2016-12-10 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: Risks to macroeconomic stability posed by excessive private leverage are significantly amplified by tax distortions. ‘Debt bias’ (tax provisions favoring finance by debt rather than equity) has increased leverage in both the household and corporate sectors, and is now widely recognized as a significant macroeconomic concern. This paper presents new evidence of the extent of debt bias, including estimates for banks and non-bank financial institutions both before and after the global financial crisis. It presents policy options to alleviate debt bias, and assesses their effectiveness. The paper finds that thin capitalization rules restricting interest deductibility have only partially been able to address debt bias, but that an allowance for corporate equity has generally proved effective. The paper concludes that debt bias should feature prominently in countries’ tax reform plans in the coming years.