Macroeconomic Implications of Tax Cuts for the Top Income Groups: 1960 - 2010
Markus Poschke () and
No 1054, 2014 Meeting Papers from Society for Economic Dynamics
Over the last 40 years the US tax system went through striking changes that considerably reduced the progressivity of the system. This resulted in a dramatic reduction of effective tax rates on top income groups. This paper investigates the macroeconomic repercussions of this change in tax policy, particularly for the distributions of income, wealth, consumption and welfare.
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