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Raising tax rates doesn't always increase revenue

02/28/2011
by Bob Tippee, EditorAn increase in taxation is not the same as an increase in government revenue. In arguments over fiscal policy, lawmakers and journalists should choose their words carefully.A National Public Radio reporter recently fell into the trap. He described the feverish debate over US fiscal policy as a choice between cutting spending and raising revenue, by which he clearly meant hiking tax rates.His wording was prejudicial. It echoed propaganda common during arguments over the economic policies of former President Ronald Reagan in the 1980s. Reagan campaigned for and eventually won reduction by Congress of the top marginal tax rate to 28% from 70%. He based the initiative on ...
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