This week's IGM Economic Experts Panel Statement:
Historical experience suggests that raising the top federal marginal tax on personal income to 70% (and holding the rest of the current tax code fixed) would raise substantially more revenue (federal and state, combined) without lowering economic activity.
Keyword: Laffer curve
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This week’s IGM Economic Experts Panel statements:
A) Since 1980, whenever substantial growth effects have been required to make a tax reform plan revenue neutral, the actual outcome has invariably been a fall in tax revenue as a share of GDP.
B) The tax reform plan proposed by President Trump this week would likely pay for itself through higher economic growth.
This week’s IGM Economic Experts Panel statements:
A) A cut in federal income tax rates in the US right now would lead to higher GDP within five years than without the tax cut.
B) A cut in federal income tax rates in the US right now would raise taxable income enough so that the annual total tax revenue would be higher within five years than without the tax cut.
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