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

Listed author(s):
  • Gómez, Manuel A.
  • Sequeira, Tiago N.

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.

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File URL: http://www.sciencedirect.com/science/article/pii/S0264999313004756
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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 37 (2014)
Issue (Month): C ()
Pages: 113-119

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Handle: RePEc:eee:ecmode:v:37:y:2014:i:c:p:113-119
DOI: 10.1016/j.econmod.2013.10.033
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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