Business and Management INK

Does the US economy face a ‘‘Fiscal Trilemma’’?

October 7, 2013 630

PFR_72ppiRGB_150pixwRead more in the Special Issue just published in Public Finance Review. Here are some of the questions that the James Alm and Steven Sheffrin of Tulane University address:

Are the goals we have for our tax system mutually incompatible? This is the
question that we posed to a distinguished group of tax economists at a conference
hosted by the Murphy Institute and the Department of Economics at
Tulane University in October 2012. More specifically, we asked whether
the US economy faced a ‘‘fiscal trilemma’’: Can the three goals of revenue
adequacy, fairness, and promotion of economic growth all be achieved, or
do we have to sacrifice one of these goals to meet the others?

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