Monday, November 12, 2012

Taxes and the Economy

A report by the Congressional Research Service was withdrawn from official circulation after Senate Republicans raised concerns.  What could those possibly be?
The reduction in the top tax rates appears to be uncorrelated with saving, investment and productivity growth.  The top tax rates appear to have little or no relation to the size of the economic pie.  However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution.

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