Effects of Recent Fiscal Policies on Children

16 Pages Posted: 19 Jul 2004

See all articles by Laurence J. Kotlikoff

Laurence J. Kotlikoff

Boston University - Department of Economics; National Bureau of Economic Research (NBER); Gaidar Institute for Economic Policy

William G. Gale

Brookings Institution

Abstract

Recent and proposed fiscal policies - the tax cuts, proposals to make them permanent, and the medicare prescription drug bill - will hurt economic prospects for most of today's children and all future generations. The programs will leave economic growth largely unchanged, but will redistribute resources from future to current generations and, within each generation, from low- and middle-income families toward an affluent minority. These effects exacerbate the impact of underlying federal budget trends and processes that will place significant, imminent pressure on funding for children's programs. An expanded program of investments in children is both feasible and desirable.

Keywords: tax cuts, medicare prescription drug bill, children, future generations

JEL Classification: H51, H52, H53, H60

Suggested Citation

Kotlikoff, Laurence J. and Gale, William G., Effects of Recent Fiscal Policies on Children. Tax Notes, Vol. 103, No. 10, pp. 1281-1296, June 7, 2004. Available at SSRN: https://ssrn.com/abstract=565501

Laurence J. Kotlikoff

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States
617-353-4002 (Phone)
617-353-4449 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Gaidar Institute for Economic Policy

Gazetny per. 5-3
Moscow, 125993
Russia

William G. Gale (Contact Author)

Brookings Institution ( email )

1775 Massachusetts Avenue, NW
Washington, DC 20036
United States
202-797-6148 (Phone)
202-797-6181 (Fax)

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