Financial Management White Papers
Macroeconomic Impacts of Stylized Tax Cuts in an Intertemporal Computable General Equilibrium Model
Overview This paper explores the consequences of a stylized cut in federal personal income tax rates when applying three alternative options for financing changes in fiscal policy. These financing options impose the government's intertemporal budget constraint by specifying what actions the government will take to pay for tax cuts in the long run. In the first option - a balanced budget rule - the government contemporaneously matches tax cuts with spending cuts; as a result, tax cuts require no new borrowing. In the second and third options, the government instead temporarily pays for tax cuts with new borrowing.
| Publisher | Congressional Budget Office | File Format | |
|---|---|---|---|
| Date Published | August 2004 | ||
| Format | White Papers | ||
| Topics | |||
-
Did you find this white paper useful?
White Paper RSS
Download
Register
