Should the US streamline its tax system? Analysis on an endogenous growth model

Manuel Gómez and Tiago Sequeira

Economic Modelling, 2014, vol. 37, issue C, 113-119

Abstract: We evaluate the growth and welfare effects of budget-neutral reforms in the US tax system. Large gains in welfare and growth could result from adopting a consumption-based tax system. In contrast, significant welfare and growth losses would follow after implementing an income tax-based reform. Eliminating double taxation of firms' profits would yield non-negligible welfare and growth gains.

Keywords: Taxes; Deficits; Growth; Welfare (search for similar items in EconPapers)
JEL-codes: E62 O11 O41 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:37:y:2014:i:c:p:113-119

DOI: 10.1016/j.econmod.2013.10.033

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