The article examines how changes in personal income taxes in the U.S. affect the economy and income distribution. By using a detailed model, the researchers found that cutting income taxes can boost economic growth, but not enough to make up for lost revenue. These tax cuts can benefit low-skilled workers indirectly by increasing demand for services. A tax plan that lowers taxes for middle-income groups, raises consumption taxes, and expands tax credits can help the economy and reduce income inequality. However, tax cuts for higher income groups can worsen income inequality.