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Publication Date: May 1981
Publisher: Heritage Foundation (Washington, D.C.)
Author(s): Peter G. Germanis
Research Area: Banking and finance
Keywords: Taxes
Type: Report
Abstract:
President Reagan's proposal to reduce federal income tax rates 30 percent over three years has sparked a sharp controversy. Proponents of the tax proposal assert that a reduction of marginal tax rates would revitalize the economy by producing non-inflationary economic growth. Critics of the plan, on the other hand, contend that such a policy would serve only to exacerbate inflationary pressures within the economy.