Micro Consequences of Macro Policies: Employment Effects of Federal Tax Incentives

摘要

The Study examines the effects of liberalized business tax incentives occasioned by the 1981 Economic Recovery Tax Act, which reduced business tax rates, reduced taxable lives of business assets, made depreciation allowances more valuable and extended the coverage of investment tax credits. Results of the study point up the differential benefits of tax incentives due to differences in industry, geographic location and other non-tax factors which affect costs, profits and productivity and, in turn, affect employment rates.