Taxation and Saving**I am grateful to the National Science Foundation (Grant Number SBR95-11321) for financial support. During the course of this project, I have benefitted from discussions with numerous friends and colleagues, and my intellectual debts are too numerous to list. However, I am especially grateful to Alan Auerbach, William Gale, and Kenneth Judd. I am also indebted to Sita Nataraj for catching a number of errors, and for suggesting a variety of expositional improvements.