Unformatted text preview: Marginal tax rates for rich are lower because its only income tax. We don’t see rich people adjusted employment hours in data Defense non-discretionary are falling because of the budget control act Cbo says you can either raise tax, cut spending in other areas, or change benefits to elderly. Raise federal revenues significantly above the average share of GDP CHAPTER 10-inside lags: the time it takes to formulate a policy-problems with stabalization policy: it takes long to agree and there is crowding out -outside lags: time it takes for policy to work supply side economics-emphasizes role that taxes play in supply of output in the economy...
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This note was uploaded on 12/14/2011 for the course ECON 102 taught by Professor Drozd during the Fall '08 term at University of Wisconsin.
- Fall '08