The first order of business for a Republican president next year should be corporate-tax reform. But even if Republicans win big in the fall, undoing America's largest policy error will be an almost impossible political lift, unless enough people in both parties come to grips with the counterintuitive economics of corporate-tax reform.

Taxmageddon is the result of the extreme shortsightedness of President Obama and the Democrats, who extended current tax policies for only two years back in 2010. The latest research suggests that the economy will suffer severely this year for that shortsightedness.

Senator Carl Levin says that Facebook is exploiting a tax loophole in order to avoid paying taxes to the government. But Facebook is a textbook case of win-win-win: the company's creators get rich, society gets the benefit of an innovative communications platform, and the U.S. Treasury gets billions in new revenues.

Why do Americans devote so much more time to working for pay than continental Europeans? Which population groups display the biggest differences in work activity across countries? Do taxes and entitlement programs explain the large national differences in work activity and their evolution over time? Richard Rogerson, a professor of...

The one thing on which our political leaders seem to agree is the need for corporate tax reform. But amid all of the promising rhetoric there is significant cause for concern. Many proposals, particularly those of Messrs. Obama and Santorum, seem to have unlearned many of the lessons of modern economics.

The following is a summary highlighting testimony by AEI Director of Economic Policy Studies Kevin Hassett to the Joint Economic Committee at a hearing entitled "How the Taxation of Capital Affects Growth and Employment."

The world is becoming increasingly scary at the very time that the military will be facing 20% reductions. With each passing day, the world closes in; with each passing day, our ability to manage that world degrades.

Recent research points to a shift in recruiting behavior by employers as an important factor in the distressing U.S. jobs situation. Employers have influenced the pace of job filling by the intensity of their recruiting efforts.