Abstract:
This paper explores quantitatively the general equilibirum implications of a revenue neutral tax reform in which the current income and capital income tax structure in the U.S. is replaced by a flat tax, as proposed by Hall and Rabushka (1995). The central aspects of such reform, the impact of tax reform on capital accumulation, labor supply and welfare, as well as its distributional consequences, are analyzed in a dynamic general equilibrium model where key features of the actual tax code are modelled.
More papers in UWO Department of Economics Working Papers from University of Western Ontario, Department of Economics Address: Department of Economics, Reference Centre, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2 Series data maintained by ().
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