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Macroeconomic Analysis of Various Proposals to Provide $500 Billion in Tax Relief
Barry Leonard (ed). This document, prepared by the staff of the Joint Committee on Taxation in the U.S. Congress, provides a macroeconomic analysis of various proposals to provide $500 billion in tax relief. The staff reports the results of simulations of three different tax policies using both the Joint Comm. staff’s Macroeconomic Equilibrium Growth model & an overlapping generations life cycle model. This document provides an analysis of how changes in tax policy may affect the nation’s economy. Despite the fact that each of these tax cuts reduces revenues by the same amount according to conventional revenue estimates, their effects on the economy vary greatly, both within the 10-year budget planning horizon & in the longer run. Charts & tables.
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