Phased-in tax cuts and economic activity
By: Christopher L. House, Matthew D. Shapiro.
Contributors: Shapiro, Matthew D.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10415; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10415.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Phased-in tax reductions are a common feature of tax legislation.  This paper uses a dynamic general equilibrium model to quantify the effects of delaying tax cuts.  According to the analysis of the model, the phased-in tax cuts of the 2001 tax law substantially reduced employment, output, and investment during the phase-in period.  In contrast, the immediate tax cuts of the 2003 tax law provided significant incentives for immediate production and investment.  The paper argues that the rules and accounting procedures used by Congress for formulating tax policy have a significant impact in shaping the details of tax policy and led to the phase-ins, sunsets, and temporary tax changes in both the 2001 and 2003 tax laws"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/13/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.