Tax Policy and the Economy (Tax Policy & the Economy)

Tax policy debates, generated by one of the most sweeping reforms of the Federal income tax system since its inception, are certain to continue for years to come, providing a fertile field for economic research. This book is the second in a series of annual publications on tax policy and the economy initiated by the National Bureau of Economic Research and designed to convey research results in a way that is accessible to a wide body of lawyers, policymakers, and businesspeople involved in formulating tax policy. Studies in Volume 2 include Don Fullerton's reevaluation of traditional claims that investment incentives bias the tax system toward capital-intensive industries; Laurence Lindsey's further results on the sensitivity of tax revenues to reductions in the top marginal tax rate; Lawrence Kotlikoff's assessment of the impact of tax reform on the pension system; and Douglas Bernheim's examination of international evidence on the impact of budget deficits on trade deficits. Volume 2 also includes research by Roger Gordon and James Hines evaluating the impact of tax reform legislation on the investment decisions of multinational corporations. Lawrence H. Summers is Professor of Economics at Harvard University and Research Associate at the National Bureau of Economic Research.