TexasRedHead
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Can someone please help me with this question i have on a homework assignment its due in like 6 hours and I cant figure it out!
President Reagan’s initial proposal in 1981 for cutting U.S. individual income tax rates involved a 23% overall reduction in rates. The full cut was to be phased in over a three-year period ending in 1983. The plan also involved gradual reductions in government expenditure expressed as a ratio to GDP.
Consider an alternative plan that would have yielded the same present value of real tax revenue but that implemented the entire tax rates in 1981. Assume that real government expenditure is the same as under Reagan’s plan. Compare this plan with Reagan’s with respect to the effects on labor and real GDP over the period 1981-83.
Similarly, the Bush tax cut of 2001 scheduled decreases in marginal income tax rates from 2001 to 2006. The 2003 law advanced the scheduled tax rate cuts to 2003. How does your analysis of the Reagan tax plan apply to the 2001 and 2003 tax cuts?
President Reagan’s initial proposal in 1981 for cutting U.S. individual income tax rates involved a 23% overall reduction in rates. The full cut was to be phased in over a three-year period ending in 1983. The plan also involved gradual reductions in government expenditure expressed as a ratio to GDP.
Consider an alternative plan that would have yielded the same present value of real tax revenue but that implemented the entire tax rates in 1981. Assume that real government expenditure is the same as under Reagan’s plan. Compare this plan with Reagan’s with respect to the effects on labor and real GDP over the period 1981-83.
Similarly, the Bush tax cut of 2001 scheduled decreases in marginal income tax rates from 2001 to 2006. The 2003 law advanced the scheduled tax rate cuts to 2003. How does your analysis of the Reagan tax plan apply to the 2001 and 2003 tax cuts?