The solution to looming Social Security shortfalls is increased economic growth. Personal retirement accounts, owned by workers and invested in real assets, would prefund benefits and could provide new saving and investment critical to economic growth, provided that tax reform makes saving and investment in the U.S. more attractive. Thus the path to Social Security reform is through tax reform.
Which changes in tax policy will have the strongest economic benefit per revenue dollar? Reducing tax rates on capital, such as cutting the capital gains tax rate or shortening depreciation lives, would have the biggest economic payoff. Repealing the alternative minimum tax (AMT) would also be potent, though other proposals such as payroll tax cuts would have much less “bang for the buck.”
At stake in this election is, among other things, the fate of almost $4.6 trillion in federal budget surpluses that the government expects to collect over the next ten years.
This Issue Brief compares the tax and spending plans of Al Gore and George Bush, and provides both static and dynamic forecasting of the economic effects of the candidates' proposals.
For over two years, the federal government has been pursuing antitrust action against Microsoft. Much heated debate has surrounded the case, most of it revolving around legal issues. But the broader ramifications for risk assessment, investor confidence and the general economy have been largely ignored.
The cloud hanging over Microsoft has already done serious damage to the economy. This IPI Issue Brief attempts to quantify the extent of the economic damage already done to the economy by the government's action against Microsoft.
A discussion of all the major elements of the bill, static and dynamic revenue estimates, an estimate of the economic effects of the bill, and a "bang for the buck" analysis of the major provisions.