This article is the first part of a two-part examination of the contentious issue of how state governments' provision of goods and services to the public should be taxed under a VAT.

The Tax Reform Act of 1986, enacted 25 years ago last Friday, showed how a tax reform that includes lower rates can change incentives in a way that grows the tax base and produces extra revenue.

Approximately 140 million federal tax returns were filed in the weeks and months leading up to April 18 this year. We know from past years that over one-third of taxpayers will file "non-taxable returns," meaning that they will not owe any federal income tax.

Different types of tax provisions shape effective marginal tax rates on income, and some basic principles should govern the roles of these provisions in setting effective marginal tax rates.

When the new president and Congress take office in 2009, they will face several critical tax policy decisions: Should the income tax rate cuts and the reductions in dividend and capital gains taxes adopted in 2001 and 2003 be made permanent? Should the corporate income tax and the taxation of...

This volume is an invaluable guide for policymakers facing important decisions about environmental taxation, marginal tax rates, dividend taxation, and the taxation of business investment.

The dollar has tanked this year, though the drop has been fairly steady and orderly. That may be about to change.

Base broadening must be approached with caution because some base-broadening measures make the tax system less neutral, impeding economic efficiency. Also, income tax base broadening cannot eliminate, and may even reinforce, the income tax's central flaw--its penalty on saving.