Econ 479

The Art of Writing, the Science of Economics

Taxing the Rich

An academic study of the Clinton tax increases found that they caused corporate executives to exercise some stock options earlier than they otherwise would have. But the increases had no noticeable long-term effect. The executives didn’t ask to be paid entirely in stock, and the economy boomed. Increasing taxes on the rich, in other words, has some unintended consequences, but it mainly has the intended ones: it raises revenue and reduces inequality.

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Written by gregorymcnamee

April 12, 2009 at 11:08 pm

Posted in Economic writing

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