Are income taxes destined to rise? the fiscal imbalance and future tax policy

Jason Saving and Alan Viard ()

No 1502, Working Papers from Federal Reserve Bank of Dallas

Abstract: We present a model of optimizing government behavior in which a need for increased revenue leads to the introduction of a new revenue source, such as a VAT, accompanied by a reduction in income taxes. We argue that this is a plausible outcome for the United States, in view of international experience and recent fiscal reform proposals, and has important implications for individual investment decisions.

JEL-codes: D78 H24 H68 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2015-01-01
New Economics Papers: this item is included in nep-pbe and nep-pub
Note: Published as: Saving, Jason L. and Alan Viard (2015), "Are Income Taxes Destined to Rise? Fiscal Imbalance and Future Tax Policy in the United States," National Tax Journal 68 (2): 235-250.
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Persistent link: https://EconPapers.repec.org/RePEc:fip:feddwp:1502

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DOI: 10.24149/wp1502

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