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Flat tax reform: A quantitative exploration

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  • Ventura, Gustavo

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.

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File URL: http://www.sciencedirect.com/science/article/B6V85-3Y9RKX5-8/2/e87fdb6a0010c6e118bc99dedd325bff
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 23 (1999)
Issue (Month): 9-10 (September)
Pages: 1425-1458

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Handle: RePEc:eee:dyncon:v:23:y:1999:i:9-10:p:1425-1458

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Web page: http://www.elsevier.com/locate/jedc

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