2 edition of The effects of tax policy on American agriculture found in the catalog.
Published 1982 by Administrator in U.S. Dept. of Agriculture, Economic Research Service
Bibliography: p. 57-62.Cover title.February 1982--P.i.Item 42-C
|Statement||U.S. Dept. of Agriculture, Economic Research Service|
|Publishers||U.S. Dept. of Agriculture, Economic Research Service|
|The Physical Object|
|Pagination||xvi, 118 p. :|
|Number of Pages||70|
|3||Agricultural economic report ;|
nodata File Size: 10MB.
The narrative literature does not speak to the long-term effects, though. Section VI discusses the results from the literature on simulation models, which has generated two main results. We show that growth rates over long periods of time in the United States have not changed in tandem with the massive changes in the structure and revenue yield of the tax system that have occurred.
The first effect normally raises economic activity through so-called substitution effectswhile the second effect normally reduces it through so-called income effects.
and Tuesday, December 7, 2010 The financing of tax cuts significantly affects its impact on long-term growth. We find that, while there is no doubt that tax policy can influence economic choices, it is by no means obvious, on an ex ante basis, that tax rate cuts will ultimately lead to a larger economy in the long run.
If they are not financed by spending cuts, tax cuts will lead to an increase in federal borrowing, which in turn, will reduce long-term growth. The historical evidence and simulation analyses suggest that tax cuts that are financed by debt for an extended period of time will have little positive impact on long-term growth and could reduce growth. While rate cuts would raise the after-tax return to working, saving, and investing, they would also raise the after-tax income people receive from their current level of activities, which lessens their need to work, save, and invest.
Second, revenue-neutral income tax reform can provide a modest boost to economic growth. Our focus is on individual income tax reform, leaving consideration of reforms to the corporate income tax for which, see Toder and Viard 2014 and reforms that focus on consumption taxes for other analyses. Tax cuts financed by immediate cuts in unproductive government spending could raise output, but tax cuts financed by reductions in government investment could reduce output.
Section IV explores empirical evidence on taxes and growth from studies of major income tax changes in the United States. Tax rate cuts may encourage individuals to work, save, and invest, but if the tax cuts are not financed by immediate spending cuts, they will likely also result in an increased federal budget deficit, which in the long-term will reduce national saving and raise interest rates.
Tax reform is more complex, as it involves The effects of tax policy on American agriculture rate cuts as well as base-broadening changes.
The importance is only heightened by concerns about the long-term economic growth rate Gordon 2016; Summers 2014 and concerns about the long-term fiscal status of the federal government Auerbach and Gale 2016. Introduction Policy makers and researchers have long been interested in how potential changes to the personal income tax system affect the size of the overall economy. Section II provides a conceptual framework by discussing the channels through which tax changes can affect economic performance, including the many ways in which a positive substitution effect in response to a tax rate cut might be dissipated or even reversed by other factors.
Given the various channels through which tax policy affects growth, a tax change will be more growth-inducing to the extent that it involves i large positive incentive substitution effects that encourage work, saving, and investment; ii small or negative income effects, including a careful targeting of tax cuts toward new economic activity, rather than providing windfall gains for previous activities; iii reductions in distortions across economic sectors and across different types of income and consumption; and iv minimal increases in, or reductions in, the budget deficit.
We also report findings from Piketty, Saez and Stantcheva 2014 that, across advanced countries, even large changes in the top marginal income tax rate over time do not appear to be strongly correlated with rates of growth.
We show that growth rates over long periods of time in the United States have not changed in tandem with the massive changes in the structure and revenue yield of the tax system that have occurred.
We find that, while there is no doubt that tax policy can influence economic choices, it is by no means obvious, on an ex ante basis, that tax rate cuts will ultimately lead to a larger economy in the long run.