JohnKerry has promised to repeal a portion of tax cuts. With the growth rate of the economy high but slowing somewhat, there are signs that this promise is rattling financial markets.

This studydevelops an estimate for the total impact of John Kerry’s spending proposals over ten years.

The proposal to remove the "double taxation" of corporate earnings would lower the cost of investment for firms and increase the after-tax returns to savers that hold corporate equity, thus stimulating capital formation, boosting the productivity of workers, and raising wages and income.

While the high tax on corporate income makes little sense from an optimal tax perspective, it makes even less sense from the perspective of international competitiveness.

Tesimony by Eric M. Engen before the House Ways and Means Committee on May 9, 2002. Perspectives on reforms of the current corporate tax system and international competitiveness.

This working paper reconsiders and adds to empirical evidence on the effect of federal government debt and interest rates.

Eric M. Engen, James K. Glassman, Kevin A. Hassett, and John H. Makin.