Abstract

http://ssrn.com/abstract=528996
 
 

References (34)



 
 

Citations (18)



 


 



Phased-In Tax Cuts and Economic Activity


Christopher L. House


University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)

Matthew D. Shapiro


University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)

April 2004

NBER Working Paper No. w10415

Abstract:     
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.

Number of Pages in PDF File: 48

working papers series





Download This Paper

Date posted: April 20, 2004  

Suggested Citation

House, Christopher L. and Shapiro, Matthew D., Phased-In Tax Cuts and Economic Activity (April 2004). NBER Working Paper No. w10415. Available at SSRN: http://ssrn.com/abstract=528996

Contact Information

Christopher L. House
University of Michigan at Ann Arbor - Department of Economics ( email )
611 Tappan Street
Ann Arbor, MI 48109-1220
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Matthew D. Shapiro (Contact Author)
University of Michigan at Ann Arbor - Department of Economics ( email )
and Survey Research Center
611 Tappan Street
Ann Arbor, MI 48109-1220
United States
313-764-5419 (Phone)
313-764-2769 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
313-764-5419 (Phone)
313-764-2769 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 1,315
Downloads: 27
References:  34
Citations:  18

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.688 seconds