Supply-side Economics: Hearings Before the Task Force on Tax Policy of the Committee on the Budget, House of Representatives, Ninety-seventh Congress, First Session, March 10, 1981
U.S. Government Printing Office, 1981 - Government publications - 172 pages
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actually additional amount annual ANTHoNY argue average believe benefits billion borrowing budget capital cause changes Committee Congress consider consumer consumption corporate cost deficit demand Dolbeare dollar earned economic economists effect estimate existing expenditures fact Federal fiscal force gains going growth higher homeowner households housing idea impact incentives income tax rates increase individual inflation interest investment KEMP Kennedy Keynesian labor less look lower marginal income tax marginal tax rates maximum means mortgage paid percent pocket President problem production proposal question raise relative rental reported result rich rising saving shelters side spending supply supply-side tax brackets tax cut tax reduction tax revenues tax system tax-rate reduction taxable taxation taxpayers theory Treasury unemployment units urban wages WANNISKI
Page 142 - The history of taxation shows that taxes which are inherently excessive, are not paid. The high rates inevitably put pressure upon the taxpayer to withdraw his capital from productive business and invest it in taxexempt securities or find other lawful methods of avoiding the realization of taxable income.
Page 132 - It is between two kinds of deficits—a chronic deficit of inertia, as the unwanted result of inadequate revenues and a restricted economy — or a temporary deficit of transition, resulting from a tax cut designed to boost the economy, increase tax revenue and achieve a budget surplus. The first type of deficit is a sign of waste and weakness—the second reflects an investment in the future.
Page 152 - ... and any new recession would break all deficit records. In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.
Page 152 - It is increasingly clear that, no matter what party is in power, as long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenue to balance the budget — just as it will never produce enough jobs or enough profits.
Page 42 - Under Plan C individuals and businessmen will begin thinking very differently about the future. They will be in a position not merely to use the larger cash income which is at their disposal, but they may well be in a mood also to dip into their accumulated assets and to use their credit. Now, the important objective of fiscal policy at a time like the present should be to stimulate individuals to use their brains, their energy, their disposable income, and also their assets and even their borrowing...
Page 21 - ... taxable income (placing it in the 32 percent tax bracket), and as little as 7 percent if it makes over $45,800, putting it within the 49 percent tax bracket James M. Poterba. of the National Bureau of Economic Research has also modeled the housing system, and concludes that these tax-inflation interactions could be responsible for as much as a 30 percent increase in housing prices ** Looking at neighborhoods in a whole range of cities across the nation, it is clear that such housing appreciation...
Page 77 - Take the case of a physician who encounters the 50 percent rate after six, eight, or ten months of work. He is faced with working another six, four, or two months for only 50 percent of his earnings. Such a low after-tax return on their efforts encourages doctors to share practices, to reduce their working hours, and to take longer vacations. The high tax rates thus shrink the tax base by discouraging them from earning additional amounts of taxable income. They also drive up the cost of medical care...
Page 44 - Must we, as a matter of inexorable inevitability, accept the proposition that what is good for General Motors is good for the country?
Page 111 - Heller himself argued that, with regard to the growth that followed the tax cut, "the record is crystal clear that it was its stimulus to demand [his emphasis], the multiplied impact of its release of over $10 billion of consumer purchasing power and $2 billion of corporate funds...
Page 8 - Losses of tax revenue attributable to provisions of the Federal income tax laws that allow a special exclusion, exemption, or deduction from gross income or provide a special credit, preferential rate of tax, or a deferral of tax liability affecting individual or corporate income tax liabilities.