Should the US streamline its tax system: an analysis on an endogenous growth model
Gómez, M., T.N. Sequeira
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(2014)
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"Should the US streamline its tax system: an analysis on an endogenous growth model"
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Economic Modelling
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37
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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.