taxableincome

Bottom 99 incomes grow fast from 1933 to 1975 and

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Unformatted text preview: and conversely) Two macro-preliminary tests: 1) In the US, top 1% incomes grow slowly from 1933 to 1975 and fast afterwards. Bottom 99% incomes grow fast from 1933 to 1975 and slowly afterwards ⇒ Consistent with rentseeking effects 2) Look at cross-country correlation between economic growth and top tax rate cuts ⇒ No correlation supports rent-seeking One micro-test using CEO pay data 26 0 Top MTR Bottom 99% 1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 Year 10 20 30 40 50 60 70 80 90 100 Marginal Tax Rate (%) Top 1% 0 Real Income per adult (1913=100) 100 200 300 400 500 Top 1% and Bottom 99% Income Growth Top tax rates and average growth 1960-2009 4 A. Growth and Change in Top M arginal Tax Rate Ireland GDP per capita real annual growth (%) 1 2 3 Japan Portugal Norway Spain Finland Italy US Netherlands France Canada UK Australia Germany Denmark Sweden NZ Switzerland -40 -30 -20 -10 Change in Top Marginal Tax Rate (points) Piketty, Saez & Stantcheva () Three Elasticities 0 10 November 2012 34 / 62 Top tax rates and average growth 1960-2009 4 B. Growth (adjusted for initial 1960 GDP) GDP per capita real annual growth (%) 1 2 3 Norway Ireland Japan US Netherlands Australia Italy Canada UK France Finland Germany Sweden Spain Denmark Portugal Switzerland NZ -40 -30 -20 -10 Change in Top Marginal Tax Rate (points) Piketty, Saez & Stantcheva () Three Elasticities 0 10 November 2012 35 / 62 INTERNATIONAL CEO PAY EVIDE...
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