Economic Effects of Fundamental Tax Reform (Google eBook)

Front Cover
Henry J. Aaron, William G. Gale
Brookings Institution Press - Business & Economics - 521 pages
0 Reviews
The tax system profoundly affects countless aspects of private behavior. It is a powerful policy influence on the distribution of income and it is the one aspect of government that almost every citizen cannot avoid. With tax reform high on the political agenda, this book brings together studies of leading tax economists and lawyers to assess the various reform proposals and examine the effects of tax reform in several distinct areas. Together, these studies and comments on them present a balanced evaluation of professional opinion on the issues that will be critical in the tax reform debate. The book addresses annual and lifetime distributional effects, saving, investment, transitional problems, simplification, home ownership and housing prices, charitable groups, international taxation, financial intermediaries and insurance, labor supply, and health insurance. In addition to Henry Aaron and William Gale, the contributors include Alan Auerbach, University of California, Berkeley; David Bradford, Princeton University; Charles Clotfelter, Duke University; Eric Engen, Federal Reserve; Don Fullerton, University of Texas; Jon Gruber, Massachusetts Institute of Technology; Patric Hendershott, Ohio State; David Ling, University of Florida; Ronald Perlman, Covington & Burling; Diane Lim Rogers, Congressional Budget Office; John Karl Scholz, University of Wisconsin; Joel Slemrod, University of Michigan; and Robert Triest, University of California, Davis.
  

What people are saying - Write a review

We haven't found any reviews in the usual places.

Contents

Introduction
1
11 Comparing the Tax Plans
8
Saving Investment and Economic Growth
27
Tax Reform Capital Allocation Efficiency and Growth
29
21 Current Effective Tax Rates by Industry
40
22 Simulation Parameters of Current Tax System and Proposed Reforms
52
23 Macroeconomic and Welfare Effects of Tax Reforms with No Adjustment Costs
58
24 Macroeconomic and Welfare Effects of Tax Reforms with Adjustment Costs
62
6A2 Basic Data Used in Calculations of Corporate Contributions
243
Fundamental Tax Reform and Labor Supply
247
71 Budget Constraint for Individual with TwoBracket Tax on Earnings
248
71 US Federal Individual Income Tax Schedule 1995
249
72 Federal Marginal Tax Rates on Earned Income
250
73 Budget Constraint for Individual with ThreeBracket Tax on Earnings
251
72 Sample Characteristics by Income Group
253
73 Behavioral Parameters Used in Simulations of Hours of Work
258

25 Effects of Two Tax Reforms on an Open Economy
64
26 Effects of Tax Reforms Assuming Alternative Labor Supply Responsiveness
65
The Effects of Fundamental Tax Reform on Saving
83
Financial Assets 197694
86
33 TaxPreferred Assets Debt and Household Net Worth 197694
88
34 Interest Elasticity of Saving and Saving Rates in the Precautionary Saving Model
98
35 Interest Rate Saving and Household Welfare Effects in a Switch from Hybrid IncomeConsumption Tax to Consumption Tax
100
36 Effects of Tax Reform on Pension Coverage and PensionInduced Changes in Total Saving Exploratory Calculations
106
Table 3A1 Interest Rate Saving and Household Welfare Effects in Switch from Hybrid IncomeConsumption Tax to Consumption Tax Accounting fo...
112
Behavioral Effects
123
Fundamental Tax Reform and EmployerProvided Health Insurance
125
41 Composition of Employee Compensation 1960 1980 1993
127
42 Expenditures for Health Services and Supplies by Type of Payer 1991
129
43 Covered Benefits in Group Health Plans 199293
130
44 Distribution of Estimated Expenditures on EmployerProvided Health Insurance for Sample Households 1994
133
45 Tax Subsidies to EmployerProvided Health Insurance
135
46 Effect of Fundamental Tax Reform on Demand for EmployerProvided Health Insurance
142
47 Distributional Analysis of Fundamental Tax Reform and the Demand for EmployerProvided Health Insurance
143
Taxes Mortgage Borrowing and Residential Land Prices
171
51 LoantoValue Ratios by Household Income and Age of Household Head
175
52 House Values by Household Income and Age of Household Head
176
53 Regressions Explaining LoantoValue Ratios Australia and United States
177
54 Homeownership Rate by Household Income and Age of Household Head
178
55 Average Increase in Mortgage Debt among Homeowners Arising from USA Tax by Household Income and Age of Household Head
180
56 Metropolitan Statistical Areas with Highest and Lowest Average Marginal Tax Rates 1970 1980 and 1990
185
57 Effect on Housing Prices of Eliminating Property Tax and Mortgage Interest Deductions by Metropolitan Statistical Area Percent
192
58 Effect of USA Tax on Housing Prices by Metropolitan Statistical Area
193
59 Effect of Flat Tax on Housing Prices by Metropolitan Statistical Areas
194
51 Housing Market Transitional Dynamics
204
The Impact of Fundamental Tax Reform on Nonprofit Organizations
211
61 Estimated Number of TaxExempt Nonprofit Organizations 1990
212
62 Revenues of Large Nonprofit Organizations 1991
213
63 Sources of Revenue of Charitable Organizations by Subsector 1992
214
65 Actual and Predicted Changes in Itemized Charitable Giving after the 1986 Tax Act by Sample and Selected Income Group
221
66 Calculations of Tax Revenue and Contributions under Different Tax Plans and Behavioral Assumptions 1996
229
67 Actual and Simulated Corporate Contributions under Elimination of the Charitable Deduction 1991
232
68 Actual and Simulated Charitable Bequests under Elimination of the Estate Tax 1993
234
6A1 Basic Data Used in Calculations of Corporate Contributions
240
74 Simulation of Effects of Tax Reform on Hours Worked Various Parameters
260
75 Simulation of Effects of a VAT on Hours Worked Parameter Set 1
261
76 Simulation of Alternative Tax Reforms Parameter Set 1
262
Incidence
279
Distributional Effects of Fundamental Tax Reform
281
81 The Distribution of Tax Liabilities and Transfer Payments by Income Percentile
286
82 The Effect of the Flat Tax on the Distribution of Tax Liabilities by Income Percentile
290
81 Average Effective Tax Rates under Current Law and the Flat Tax
293
83 Percentage of Families in Each Income Decile with Tax Changes of Various Magnitudes
295
84 Distributional Effects of the Flat Tax by Age Income Class and Homeownership Status 1994
296
85 Distribution of Current Law and flat Tax Burdens for Families Age 4050 1994
298
86 Distributional Effects of Alternative Tax Reform Proposals
300
87 Distribution of Asset and Liability Holdings in the US Population 1992 Survey of Consumer Finances
304
8B1 Distribution of Taxes under Alternative Incidence Assumptions
312
Lifetime Effects of Fundamental Tax Reform
321
91 Changes in Effective Tax Rates on Capital from Switching to Proportional Consumption VAT Wage and Income Taxes
327
92 Economic Effects of Switching to Proportional Consumption VAT Wage and Income Taxes
329
93 Distribution of Intergenerational Welfare Effects under Eight Tax Proposals by Age
332
94 Distribution of Intergenerational Welfare Effects under Eight Tax Proposals by Income Category
334
95 Efficiency Gains from Eight Tax Replacements under Various Assumptions about Intertemporal and LeisureConsumption Elasticities
336
Administrative and Transitional Issues
353
Which Is the Simplest Tax System of Them All?
355
101 Quantitative Estimates of the Compliance Cost of the US Income Tax System
360
10A1 Average Time Spent on Various Activities by Type of Return and Preparer Status 1983 Estimates
383
Transition Issues in Moving to a Consumption Tax A Tax Lawyers Perspective
393
Finance and International Effects
435
Treatment of Financial Services under Income and Consumption Taxes
437
121 Treatment of a Demand Deposit under the Income Tax
444
122 Treatment of a Demand Deposit under a SubtractionType Consumption Tax
450
123 CashFlow Treatment of a Demand Deposit
452
Fundamental Tax Reform in an International Setting
465
131 Alternative US Tax Treatment of International Transactions
474
132 Foreign Activity in the United States by Country of Ultimate Beneficial Owner 1992
486
Contributors
503
Participants
505
Index
507
Copyright

Common terms and phrases

Popular passages

Page v - It is the function of the Trustees to make possible the conduct of scientific research, and publication, under the most favorable conditions, and to safeguard the independence of the research staff in the pursuit of their studies and in the publication of the results of such studies. It is not a part of their function to determine, control, or influence the conduct of particular investigations or the conclusions reached.
Page 4 - ... are taxed at the corporate level and again at the individual level when they are remitted as dividends.

References to this book

All Book Search results »

Bibliographic information