In this paper, we focus on how tax changes affect economic
growth. We focus on two types of tax changes—reductions
in individual income tax rates and “income tax reform.” We
define the latter as changes that
broaden the income tax base
and reduce statutory income tax
rates, but nonetheless maintain
the overall revenue levels and
the distribution of tax burdens
implied by the current income
system. Our focus is on individual
income tax reform, leaving
consideration of reforms to the corporate income tax (for
which, see Toder and Viard 2014) and reforms that focus on
consumption taxes for other analysis.