Indexing the Individual Income Tax for Inflation: Will this Help to Stabilize the Economy? : A Study

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U.S. Government Printing Office, 1976 - Fiscal policy - 20 pages

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Page 6 - ... the famous credit crunch of late 1974. Under the impact of tight money, demands fell rapidly. Home construction fell from 2.1 million units in 1973 to an annual rate of less than 900,000 million units in late 1974. A recession was created within a recession. While the real GNP had fallen 2.5 percent from the fourth quarter of 1973 to the third quarter of 1974, it now started to plunge rapidly— falling another 3.2 percent in the fourth quarter of 1974 and the first quarter of 1975.5 The end...
Page 7 - Can Income Tax Increases be Inflationary? An Expository Note,
Page 2 - Taxation stated this conventional view quite positively when it said that — ' No attempt should be made to adjust the tax structure automatically for changes in the purchasing power of money. To develop a tax system that taxed only incomes in "real" purchasing power would irreparably damage the built-in stability of the system.
Page 7 - Some econometric evidence for the United States is provided by Robert J. Gordon, "Inflation in Recession and Recovery," Breakings Papers on Economic Activity, 1971.

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