Federal Budget and Spending

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International Tax Crowding Out
Research

Time to Shoulder Aside “Crowding Out” As an Excuse Not to Do Tax Reform

This paper evaluates the arguments for and against “crowding out” and compares these arguments to empirical studies. It discusses the impact of tax changes on the allocation of national income between consumption and saving, and the allocation of saving between private investment and government deficits. It finds that the crowding out argument is largely based on a mistaken assumption about the flexibility and availability of saving and credit for the financing of government deficits and private investment.

31 min read
Blog

How a Longer Budget Window Helps and Doesn’t

Some federal lawmakers want a longer budget window to keep temporary tax cuts in place longer. However, temporary tax cuts would still have drawbacks and won’t provide the benefits of permanent tax reform.

5 min read