By Martin Feldstein

ISBN-10: 0226240932

ISBN-13: 9780226240930

ISBN-10: 0226241734

ISBN-13: 9780226241739

Destined to develop into the normal advisor to the commercial coverage of the U.S. throughout the Reagan period, this ebook offers an authoritative checklist of the commercial reforms of the 1980s.In his creation, Martin Feldstein offers compelling research of regulations with which he used to be heavily concerned as chairman of the Council of financial Advisers throughout the Reagan management: financial and alternate price coverage, tax coverage, and funds matters. different top economists and policymakers research numerous family and foreign matters, together with financial and trade fee coverage, rules and antitrust, in addition to alternate, tax, and funds policies.The individuals to this quantity are Alberto Alesina, Phillip Areeda, Elizabeth Bailey, William F. Baxter, C. Fred Bergsten, James Burnley, Geoffrey Carliner, Christopher DeMuth, Douglas W. Elmendorf, Thomas O. Enders, Martin Feldstein, Jeffrey A. Frankel, Don Fullerton, William M. Isaac, Paul L Joskow, Paul Krugman, Robert E. Litan, Russell B. lengthy, Michael Mussa, William A. Niskanen, Roger G. Noll, Lionel H. Olmer, Rudolph Penner, William Poole, James M. Poterba, Harry M. Reasoner, William R. Rhodes, J. David Richardson, Charles Schultze, Paula Stern, David Stockman, William Taylor, James Tobin, W. Kip Viscusi, Paul A. Volcker, Charles E. Walker, David A. clever, and Richard G. Woodbury.

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Extra info for American Economic Policy in the 1980s (National Bureau of Economic Research Conference Report)

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But, even with all these changes, the high-income group appeared in 1986 to receive a proportionally larger tax cut than those at lower income levels. The designers of the tax reform therefore introduced a substantial increase in the personal exemption as a way of cutting taxes for lower-income taxpayers. An increase in the personal exemption leaves almost all marginal tax rates unchanged (except among those who no longer owed any tax as a result of the higher exemptions) and therefore has no favorable supply-side effect.

What started as an attempt to preempt a political move became the most wide-ranging tax reform since the introduction of the income tax. Presidential Preferences It would be wrong to regard the tax reform of the 1980s as the product of intellectual fashions and political forces alone. President Reagan had strong convictions about tax policy that shaped the tax changes throughout his eight years as president. President Reagan strongly opposed high rates of personal income taxation 21 American Economic Policy in the 1980s: A Personal View and particularly the very high level of the top marginal tax rate.

Such programs would have been worth cutting or eliminating even if there were not a large budget deficit. Economists were generally not involved in the detailed legislative process dealing with these spending programs, but there is no doubt that economic reasoning set the framework for selecting appropriate spending cuts. Specific program cuts generally originated in the OMB. m 24. Describing Stockman as a “natural” economist may be misleading. When I met Stockman at the beginning of his first term in Congress, he had done some systematic reading of economics and continued to read nontechnical economics during his years in Congress.

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American Economic Policy in the 1980s (National Bureau of Economic Research Conference Report) by Martin Feldstein

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