This paper uses a new, large-scale, dynamic life-cycle simulation model to compare the
welfare and macroeconomic effects of transitions to five fundamental alternatives to the US
federal income tax, including a proportional consumption tax and a flat tax. The model
incorporates intragenerational heterogeneity and a detailed specification of alternative tax
systems. Simulation results project significant long-run increases in output for some reforms.
For other reforms, namely those that seek to insulate the poor and initial older generations …

This paper uses a new, large-scale, dynamic life-cycle simulation model to compare the
welfare and macroeconomic effects of transitions to five fundamental alternatives to the US
federal income tax, including a proportional consumption tax and a flat tax. The model
incorporates intragenerational heterogeneity and a detailed specification of alternative tax
systems. Simulation results project significant long-run increases in output for some reforms.
For other reforms, namely those that seek to insulate the poor and initial older generations …