April 11, 2012 Around the Web

Will Higher Tax Rates Balance the Budget?

As the top marginal tax rate decreases, the government actually collects more tax revenue per person. An exception is Social Security and Medicare taxes. As these increase, the government collects more tax revenue per person. Why do these taxes respond differently? Economics professor Antony Davies suggests the reason may be that these taxes are more difficult to avoid. This evidence supports the argument that to increase tax revenues, the government should focus on simplifying the tax code.

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