Search Results
Showing results 1 to 7 of approximately 7.
(refine search)
Journal Article
How would a flat tax affect small businesses?
The U.S. Congress is considering several strategies to reform the federal income tax system. The most widely discussed strategy, a flat tax, would tax income received by businesses and individuals at the same low, flat rate. Flat tax proposals would eliminate most tax deductions and tax credits but would increase the personal exemption for individual taxpayers. While the debate continues over whether a flat tax would be fair to individual taxpayers, assessing the effect of a flat tax on economic growth and business activity is also important.> Most economists who analyze tax incentives ...
Working Paper
Growth effects of shifting from a progressive tax system to a flat tax
This paper develops a quantitative general equilibrium model to assess the growth effects of adopting a flat tax plan similar to the one proposed by Hall and Rabushka (1995). Using parameters calibrated to match the progressivity of the U.S. tax schedule and other features of the U.S. economy, we compute the growth and level effects of adopting a revenue-neutral flat tax for both a human-capital based endogenous growth model and a standard neoclassical growth model. Growth effects are decomposed into the parts attributable to the flattening of the marginal tax schedule, the full expensing of ...
Journal Article
The flat tax and housing
Working Paper
Growth effects of a flat tax.
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.
Journal Article
Flat taxes and the limits to reform
A discussion of proposals to reform the federal income tax system, and an analysis of the economic and political issues surrounding flat-tax reform proposals.
