On what do economists agree and disagree about the effects of taxes on economic growth? Q.On what do economists agree and disagree about the effects of taxes on economic growth? A.Economists generally agree that people and businesses respond to taxes and that large tax changes can move the economy. But economists have not (and probably cannot) pin down exactly how the economy works and how responsive people and businesses are to policy changes. As a result, economists often disagree about what models and parameters to use to analyze tax policies. Those scientific disagreements are sometimes amplified by value judgments about appropriate policy. Read more about On what do economists agree and disagree about the effects of taxes on economic growth?
How do taxes affect income inequality? Q.How do taxes affect income inequality? A.Because high-income households pay a larger share of their income in total federal taxes than low-income households, federal taxes reduce income inequality. But federal taxes have done little to offset increasing income inequality over the past 40 years. Read more about How do taxes affect income inequality?
How should distributional tables be interpreted? Q.How should distributional tables be interpreted? A.Distributional tables provide important and useful information, but keep six key questions in mind to correctly interpret the results. Read more about How should distributional tables be interpreted?
