Effective Tax Rates- taxes on the wealthy spurring surplus

[Michael Perelman]

Regarding what Nathan wrote below, ordinary people have seen there standard of
living fall, and cutting taxes is one of the few possible ways in which they can
hope for improvement.  You are underestimating the ability of the leaders to
confuse the issue.

Nathan Newman wrote:


> This week's ECONOMIST (Jan 30th) has a lovely graph showing why the
> Republicans are going to have so much trouble selling their tax cut plans.
> What it shows is that while tax revenue as a share of GDP is at historical
> highs, "most of this increase [in the last few years] has come from the top
> income brackets...'Ordinary' Americans have not seen their effective tax
> rates rise."

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Michael Perelman
Economics Department
California State University
michael at ecst.csuchico.edu
Chico, CA 95929
530-898-5321
fax 530-898-5901