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Tuesday, October 16, 2012

Optimal Tax Policy

A group of top economists was asked what they thought about this statement:

"Taxing capital income at a permanently lower rate than labor income would result in higher average long-term prosperity, relative to an alternative that generated the same amount of tax revenue by permanently taxing capital and labor income at equal rates instead."

There was not unanimity, but about three times as many economists agreed than disagreed.