Report Detail Summary

Obama's Proposed Tax Rate Increases and the Economy's Incentive Structure

March 05, 2009

While we can safely argue that marginal tax rates will remain unchanged at the lower income level, we know that at the higher income level the rates will go up. We also know that as tax rates increase the incentives to save, work, and invest will decline. In order to get a sense of the impact on the economy’s incentive structure, we have looked at the effect of higher tax rates on the after tax take of different activities in different locations.

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