by Mark Thoma, University of Oregon (Department of Economics)

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Supply-Side Fairy Tales

Posted on June 02, 2008

Steve Waldman weighs in on Greg Mankiw's proposal to cut corporate taxes:Supply side fairy tales, by Steve Waldman: Greg Mankiwoffers a strong endorsement of a proposal to cut the corporate income tax from 35 to 25 percent, claiming It is perhaps the best simple recipe for promoting long-run growth in American living standards. ... A good case can be made for cutting or even eliminating the corporate income tax. But Mankiw's argument does not cohere.Let's start positive. Mankiw is right to point out that the incidence of the corporate income tax might not in fact be as progressive as its p...

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supply side , tax