Tax Reform and U.S. Economic Growth
Open/View files
Date
1990
Author(s)
Yun, Kun-Young
Publisher
University of Chicago Press
The Harvard community has made this article openly available. Please share how this access benefits you.
Citation
Jorgenson, Dale W., and Kun-Young Yun. 1990. Tax reform and U.S. economic growth. Journal of Political Economy 98(5) Part 2: S151-S193.
Abstract
In this paper we evaluate the impact of the Tax Reform Act of 1986 on U.S. economic growth. We first calculate effective tax rates on income from capital employed in corporate, noncorporate, and household sectors. We then project the future growth of the U.S. economy with and without the 1986 tax reform. We find that much of the potential gain in welfare was dissipated through failure to index the income tax base for inflation. The most promising avenue for future reform is to include income from household assets in the tax base, while reducing tax rates on business income.
Terms of Use
This article is made available under the terms and conditions applicable to Other Posted Material (LAA), as set forth at Terms of Service
Collection