The U.S. economy has grown considerably over the past three decades. However, there is a prevailing sentiment that the middle class and the poor have been left behind. Our results show evidence of considerable improvement in material well-being for both the middle class and the poor over the past three decades.

The author discusses key concepts in consumption and income taxes and identifies the problems of a transition to a consumption-based system.

Alan J. Auerbach and AEI"s Kevin A. Hassett have edited a new volume of essays, Toward Fundamental Tax Reform,that showcasespolicy recommendations ofleadingtax scholars.

Seemingly common-sense taxation approaches raise issues of equity, tax administration, and unintended economic consequences.

An AEI studydemonstrates that many economists' pessimistic view of social welfare in the United States is unwarranted and questions the case for changes in policies that are predicated on a declining or stagnant standard of living.

One component of potential tax reform that has not received much public focus is the effect tax reform might have on America's international competitiveness. With rising trade deficits and a weak dollar, the competitive implications of tax reform is an essential aspect of the policy debate. Under current law, the...

Many economists' pessimistic view of social welfare in the United States is unwarranted.

Economists have long argued that significant reforms of personal and company taxation can have large effects on firms’ investment decisions. At some level policymakers themselves have heeded this message. During the 1980s, for example, significant tax reforms were introduced in many countries (see Jorgenson, 1992; and Messere, 1993). During the...