| Entin and McBride simulation SupportiveArgument1 #232795 Simulating the Economic Effects of Romney's Tax Plan |
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+Citations (1)
- CitationsAdd new citationList by: CiterankMapLink[1] Simulating the Economic Effects of Romney's Tax Plan
Author: Stephen Entin, William McBride
Publication info: 3 October 2012 - paper on Tax Foundation web site
Cited by: Peter Baldwin 5:08 AM 31 October 2012 GMT
URL:
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| Excerpt / Summary Conclusion
While the debate over tax reform has been consumed with distributional issues, the economy continues to limp along in the worst recovery since the Great Depression. To be sure, this economy faces headwinds that even an ideal tax code will not address, but pro-growth tax reform can provide substantial benefits. Our results indicate that by lowering tax rates on investment and labor, the Romney tax plan would grow the economy by 7.4 percent, the capital stock by almost 19 percent, wages by almost 5 percent, and hours worked by 3 percent. The benefits would be widely enjoyed, as every income group would experience at least a 7 percent increase in after-tax income. It would benefit the federal budget as well, in that fully 60 percent of the static revenue loss from Romney’s plan would be recovered from taxing a larger economy. |