By Kevin A. Hassett
Publication via Hassett, Kevin A.
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Additional info for The Magic Mountain: A Guide to Defining and Using a Budget Surplus
Page, and J. Sturrock. 1999. ” In Generational Accounting around the World, edited by Alan J. Auerbach, Laurence J. Kotlikoff, and Willie Leibfritz. Chicago: University of Chicago Press. Graetz, Michael J. 1997. ) of the Income Tax. New York: W. W. Norton. REFERENCES 37 Gramlich, Edward M. 1989. ” Journal of Economic Perspectives 3. , and Alvin Rabushka. 1983. Low Tax, Simple Tax, Flat Tax. New York: McGraw Hill. ———. 1995. The Flat Tax, 2d ed. Stanford: Hoover Institution Press. Hausman, J. 1981.
9 percent drop. S. households is about $8 trillion in current dollars. If one wanted to issue bonds equal to the present value of asset decline experienced by current asset holders (with Auerbach’s estimates) to compensate them, the value of these bonds would be $288 billion. Switching to an Armey-Shelby tax would require $552 billion in recognition bonds. Both numbers are smaller than the sum of the estimated surpluses. Carry Out Social Security Reform As the debates summarized in the report of the 1994–1996 Advisory Council on Social Security (1997) indicate, economists and policymakers are concerned that the current pay-as-you-go Social Security system reduces capital formation and generational equity.
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