Working Paper: NBER ID: w1909
Authors: Patric H. Hendershott
Abstract: Possible benefits of tax reform include faster economic growth and greater equity across households. A part of economic growth is the channeling of saving into the most productive real investments. The ability of various tax regimes to channel saving efficiently and independently of the inflation rate is the focus of the current paper. The tax regimes include current law, preERTA law, the Treasury and Administration reform proposals, HR 3838, and what seems likely to come out of the Senate Finance Committee.
Keywords: Tax Reform; Economic Growth; Equity; Capital Allocation
JEL Codes: H21; H24; H25
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Tax Reforms (H29) | Level Playing Field (Z28) |
| Tax Reforms (H29) | Efficiency of Capital Allocation (D61) |
| Administration Plan (I18) | Risk-Adjusted Net Rental Costs Sensitivity to Inflation (E31) |
| Treasury Plan (E63) | Sensitivity of Playing Field to Inflation (E31) |
| Treasury Plan (E63) | Capital Efficiency (G31) |
| House Bill (I19) | Bias Towards Owner-Occupied Housing (R21) |