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This PDF is a selection from an out-of-print volume from the National
Bureau of Economic Research
Volume Title: Tax Policy and the Economy, Volume 1
Volume Author/Editor: Lawrence H. Summers, editor
Volume Publisher: MIT Press
Volume ISBN: 0-262-19263-2
Volume URL: http://www.nber.org/books/summ87-1
Publication Date: 1987
Chapter Title: Introduction, acknowledgment
Chapter Author: Lawrence H. Summers
Chapter URL: http://www.nber.org/chapters/c10926
Chapter pages in book: (p. -5 - 0)
de- this of half than less that show Poterba and Auerbach 1960. in were
they as great as one-third about only are GNP to relative burdens tax
Corporate GNP. of share a as revenues tax corporate in decline striking
the examines paper This Declined." Revenues Tax Corporate Have 1Why
study, Poterba's James and Auerbach's Alan with beginning papers the of
each describe briefly shall I issue. policy important an of aspects amine
ex- to data new together brings paper Each issues. policy tax diverse of
studies six contains Economy the and Policy Tax of issue inaugural This
making. decision private and public both for input valuable provide
they policies, particular endorse not do here included papers the though
Al- community. policy tax broader the for also but academics for only
not written is and nontechnical is series this publications, Bureau other
many Unlike series. this in first the is volume current The Economy."
the and Policy "Tax on publications and conferences annual of series
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policy. tax of mulation
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accessible is that way a in presented not are research policy tax economic
of results the however, often, too All equity. and efficiency economic on
have policies tax that effects indirect many the isolate can and behavior
economic on changes tax potential of impact the quantify can It debates.
policy tax to contribution important an make can research Economic
come. to years for us with be will debates policy Tax economy.
the in changes ongoing accommodate to system tax the reform to need
the see Others revenues. increase to measures new for need the ticipate
an- observers Some efforts. reform tax further to turning already is tion
atten- years, several for effect full take not wifi 1986 in enacted code tax
new the Although public. the and media, the makers, policy of attention
the commanded issues policy Tax inception. its since system tax income
federal the of reforms sweeping most the of one witnessed year past The
Introduction
NBER and University Harvard
Summers H. Lazvrence
re- that children, their to gifts making as such actions, avoidance take to
people encourages also tax estate The 1985). in bfflion $6 (approximately
revenue of amount small a only raises tax the permissible, legally are that
schemes avoidance tax the and exemptions many its of Because nues.
revetax
federal
reduce
conceivably
tax
estate
could
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that gests
sugRevenue?"
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disease. of amount
substantial a avoided certainly almost it that concludes he and smokers,
of number the reduced considerably increase tax the that finds Harris
producers. cigarette among collusion facilitated that point focal a vided
pro- it since increase, tax recent the by caused been have nonetheless
may it of much that however, argues, Harris cigarettes. on burden tax
the in increase the than greater much was increase price This inflation).
for (adjusted percent 36 by rose cigarettes of pack a of price the years five
last the Over prices. on had cigarettes on tax excise federal the in hike
recent the effect what examines he particular, In health. on impact mate
ulti- their and cigarettes for market the on have taxes these effect what
considers He taxation. tobacco of effects economic the explores Harris
Jeffrey by Tax" Excise Cigarette Federal the in Increase 1983 "The
program. current the of success the sures
en- that compliance voluntary the undermine therefore and tax come
in- the toward attitudes change might amnesty An risks. long-term are
there that caution they However, rolls. the on taxpayers more getting by
tax income the enforce to efforts future enhance would and run short the
in revenue raise would procedures, enforcement stricter with coupled
amnesty, tax full-scale a that conclude They taxpayers. delinquent from
collect could it penalties the half about waives currently IRS the cause
be- exists, already amnesty facto de a that stress authors The program.
amnesty tax federal a of effects likely the consider and programs nesty
am- tax with states several of experience the review Zeckhauser Richard
and Leonard Herman Policy" Tax and Enforcement, "Amnesty, In
1985. in bfflion $25 as much as moneyperhaps of amount nificant
sig- a Treasury the cost also have may devices financial These dividends.
of taxation double the escape shareholders corporate help to continue
wifi and helped have devices these that concludes He collections. tax
on trend this of effect the examines Evidence," Some Avoidance: Tax and
Finance Corporate in Developments "New paper, Shoven's John mergers.
and repurchases share in increase an been has there years recent In
standards. historical by light be will profits to relative burdens
tax corporate in, phased is Act Reform Tax 1986 the after Even together.
taken changes legislative all than collections revenue on impact greater a
had have profits corporate Declining rules. tax in changes to due is clime
SUMMERS viii-
related. weakly are contributions and benefits Security
Social individuals many for that demonstrate also authors The widowed.
or divorced are who women for return of rates low very provides and
not, do who women married to work who women married from butions
redistri- large very in results Security Social tax. income individual the
of effects tax" "marriage discussed much the dwarf system Security cial
So- the in workers single and workers married between redistributions
the that shows Puffert Douglas and Boskin Michael by paper final The
directly. generates
it revenue the offsets approximately tax estate the by caused revenues tax
income in reduction the that suggesting data presents Bernheim tions.
collec- tax income on impact negative its include not do tax estate the by
raised revenue the of estimates standard But collections. tax income duce
ix INTRODUCTION
Acknowledgments
The authors and I are indebted to the people at the NBER who made this
volume and the conference upon which it is based possible. NBER president Martin Feldstein conceived the idea of starting a series of annual
volumes communicating the results of economic research on tax policy to
a wide audience, and he has supported this project throughout.
Deborah Mankiw administered the organization of the conference and
this volume with great skifi and good cheer. There would be no volume
without her efforts. Kirsten Foss Davis and Ilana Hardesty did a fine job
of handling the logistics of the conference itself. Merri Ansara and Jane
Konkel typed and retyped the manuscripts under great time pressure.
FinIly, I am grateful to the authors of the papers presented here, whose
research has set a high standard for future volumes in this series.
Lawrence H. Summers