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Federal Reserve Bank of Cleveland
Working Papers (Old Series)
Growth effects of a flat tax.
Steven P. Cassou
Kevin J. Lansing
Abstract

A presentation of a quantitative general equilibrium model showing that a revenue-neutral flat tax can permanently boost per capita growth by 0.18 to 0.85 percentage point annually, and that the lower marginal tax rate and the full investment write-off are both important contributors to the increased growth.


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Steven P. Cassou & Kevin J. Lansing, Growth effects of a flat tax., Federal Reserve Bank of Cleveland, Working Papers (Old Series) 9615, 1996.
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Keywords: Flat-rate income tax ; Taxation ; Economic conditions - United States
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