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How Changes in the Distribution of Earnings Affect the Federal Deficit: Working Paper 2021-12

Brooks Pierce

No 57217, Working Papers from Congressional Budget Office

Abstract: This paper by the Congressional Budget Office examines how the federal budget deficit would have differed in 2018 under four scenarios that vary the distribution of labor earnings while leaving aggregate earnings unchanged. The scenarios were constructed to isolate the budgetary effects of changes in the distribution of earnings and do not reflect an assessment of policies that would change the distribution of earnings. CBO estimates that substantial changes in the distribution of earnings would have relatively modest effects on the deficit because of

JEL-codes: D30 H24 H53 (search for similar items in EconPapers)
Date: 2021-10-05
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