Professor Paleveda's Paradox: When Higher Marginal Tax Rates Helped the Economy
5 Pages Posted: 12 Jan 2012
Date Written: November 22, 2011
This paper reviews the time where higher marginal tax rates actually helped the economy. In some cases lowering the marginal tax rate, the economy did not improve. An optimal tax rate is also suggested.
Keywords: Tax, economy
JEL Classification: K34
Suggested Citation: Suggested Citation