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Full-Text Articles in Social and Behavioral Sciences
The Indexation Of Interest, Depreciation, And Capital Gains And Tax Reform In The U.S., Don Fullerton
The Indexation Of Interest, Depreciation, And Capital Gains And Tax Reform In The U.S., Don Fullerton
Don Fullerton
The Treasury's 1984 plan is a more comprehensive income tax, including the indexation of interest, depreciation, and capital gains. The 1985 President's proposal retains some of this indexation. The author measures the incentives under each regime to make marginal investments in the corporate, noncorporate and housing sectors. Inflation causes current effective tax rates to rise for some assets and fall for others. Overall rates fall with inflation, and the corporate tax is completely offset by credits, allowances, and deductions. Under the proposals, the corporate tax reemerges, effective tax rates are much more uniform, and the interference of inflation is virtually …
Uncertain Parameter Values And The Choice Among Policy Options, Don Fullerton, Andrew Lyon
Uncertain Parameter Values And The Choice Among Policy Options, Don Fullerton, Andrew Lyon
Don Fullerton
We use a tax policy example to show how debate on the value of an elasticity parameter translates into a debate about policy choices. To construct this example, suppose that the choice among four particular tax reform options is based on a single measure of efficiency gain. For each reform, we show how the size of this gain depends upon the elasticity of saving with respect to the net rate of return. Moreover, within quite narrow and reasonable bounds for the elasticity parameter, we find regions in which each of three different tax reforms turns out to dominate the others.
Long-Run Effects Of The Accelerated Cost Recovery System, Don Fullerton, Yolanda K. Henderson
Long-Run Effects Of The Accelerated Cost Recovery System, Don Fullerton, Yolanda K. Henderson
Don Fullerton
No abstract provided.
Replacing The U.S. Income Tax With A Progressive Consumption Tax : A Sequenced General Equilibrium Approach, Don Fullerton, John B. Shoven, John Whalley
Replacing The U.S. Income Tax With A Progressive Consumption Tax : A Sequenced General Equilibrium Approach, Don Fullerton, John B. Shoven, John Whalley
Don Fullerton
This paper examines the welfare consequences of changing the current U.S. income tax system to a progressive consumption tax. We compute a sequence of single period equilibria in which savings decisions depend on the expected future return to capital. In the presence of existing income taxes, the U.S. economy is assumed to lie on a balanced growth path. With the change to a consumption tax, individuals save more and initially consume less. As the capital stock grows, consumption eventually overtakes that of the original path, and the economy approaches the new balanced growth path with higher consumption and a greater …
Corporate Tax Integration In The United States: A General Equilibrium Approach, Don Fullerton, A. Thomas King, John B. Shoven, John Whalley
Corporate Tax Integration In The United States: A General Equilibrium Approach, Don Fullerton, A. Thomas King, John B. Shoven, John Whalley
Don Fullerton
This paper presents estimates of static and dynamic general equilibrium resource allocation effects for four alternative plans for corporation and personal income tax integration in the United States. A medium-scale numerical general equilibrium model is used which integrates the U.S. tax system with consumer demand behavior by household and producer behavior by industry.