Institute for Research in Economic and Fiscal issues

IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
and economic freedom

Does the temporary extension of Bush-era tax rates reduce uncertainty?

This is the question addressed by Jason Fichtner and Katelyn Christ in their working paper for the Mercatus Center. They explain that a real tax reform is necessary, rather than the current last-minute decision for extension. It is important for Congress to focus on implementing stable low marginal tax rates that do not discourage working, saving, or investing and provide taxpayers with some degree of certainty to make growth promoting economic decisions. You can read "Uncertainty and Taxes: A Fatal Policy Mix" here.

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