Household Behavior and the Tax Reform Act of 1986
Open Access
- 1 August 1987
- journal article
- Published by American Economic Association in Journal of Economic Perspectives
- Vol. 1 (1) , 101-119
- https://doi.org/10.1257/jep.1.1.101
Abstract
President Reagan's May 1985 letter to Congress, accompanying his tax reform proposal, argued that the existing tax system hindered economic growth because "most Americans labor under excessively high tax rates that discourage work and cut drastically into savings." This paper analyzes how the Tax Reform Act of 1986 affects these aspects of household behavior.Keywords
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This publication has 3 references indexed in Scilit:
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- Taxation, Saving, and the Rate of InterestJournal of Political Economy, 1978
- The Measurement and Determination of Loanable-Funds SavingBrookings Papers on Economic Activity, 1978