Given the increasing use of stock options in executive compensation, the authors examine how taxes influence the choice of compensation.
The costs of raising the minimum wage could be greater than previously thought, especially on younger workers. Much of the harm done to these workers could be avoided by exempting individuals under the age of 25 from the minimum wage.
In this article, Gorry and Hassett review the major contributions of the Auerbach- Kotlikoff model of dynamic fiscal policy and explore highlights of subsequent research based on dynamic general equilibrium models of fiscal policy.
This paper constructs a labor search model to explore the e ffects of minimum wages on youth unemploy-
An individual-based tax system helps resolve a number of fairness concerns by treating all individuals equally, regardless of marital status.
Should the US tax code treat people as families, as it currently does, or as individuals? This paper considers the costs and benefits of switching to a tax system based on individual, rather than family, income.
Phase-outs out of government benefits are well-intentioned: they aim to ensure that the rich do not benefit from programs intended for the poor and middle-class. However, they result in a complex, nontransparent tax and transfer system that punishes work and traps many low-income families in poverty. Reform should aim to provide support for needy Americans while preserving work incentives.
This article discusses the role of both average and marginal tax rates throughout the income distribution. Our analysis relies on optimal tax theory, which allows us to study the trade-off between two of the main goals of policymakers: progressivity and economic efficiency.