SECTION 1: INTRODUCTION AND SUMMARY Changes in tax policy can influence economic incentives for households to work and save and for businesses to invest. Subsequent changes in employment, investment, and incomes can affect federal tax revenues. Dynamic analyses capturing such…

The President's budget for fiscal year 2007 in­cluded a number of proposals to extend expiring tax provisions. The most significant involved ex­tending the lower marginal rates on ordinary in­come enacted under the 2001 Economic Growth and Tax Relief Reconciliation Act (EGTRRA) and the preferential rates on individual net capital gains realizations and dividend income enacted under…

The recent publication of "A Dynamic Analysis of Permanent Extension of the President's Tax Relief"[1] marks an important and informative de­parture for the Office of Tax Analysis (OTA) in the U.S. Department of the Treasury. It is the OTA's first public attempt to do a dynamic analysis of a major…

Tables included in this report Table 1: The Economic Effects of the Katrina Emergency Tax Relief Act of 2005   Introduction Hurricane Katrina has dealt a serious blow to the Gulf Coast and New Orleans. Initial estimates from state and local authorities suggested that losses of human life could approach or even…

People have produced such amazing products during the past few years that it is easy to forget that, after their unveiling, machines such as the printing press and the steam engine were viewed with just as much awe as the microprocessor is today. Yet what is clumsily referred to as "technological innovation" has consistently led…

Nearly every day, the two major presidential candidates speak about the economic good or ill that stems from the 2001 and 2003 tax cuts. Besides the war in Iraq, few matters so divide the candidates and their supporters as their view of the wisdom of enacting substantial tax cuts in 2001 and again two…