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Raising Revenue from High-Income Households: Should States Continue to Place the Lowest Tax Rates on Those with the Highest Incomes?

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  • Jeffrey Thompson

Abstract

In recent years, some states have responded to the collapse in tax revenue following the Great Recession by turning to tax increases targeted at high-income households. The revenue from such taxes can help sustain public spending on vital public services. Jeffrey Thompson looks at decades of evidence and clearly finds that such income taxes effectively raise substantial revenue, without risk of harm to the state’s economy. He argues that wealthy households have reaped vast benefits from state and federal tax codes for decades now, and to look to them now for much-needed revenue is sound policy. >> Download the five-page Research Brief>> Download the full study

Suggested Citation

  • Jeffrey Thompson, 2012. "Raising Revenue from High-Income Households: Should States Continue to Place the Lowest Tax Rates on Those with the Highest Incomes?," Published Studies revenue_peri_march5, Political Economy Research Institute, University of Massachusetts at Amherst.
  • Handle: RePEc:uma:perips:revenue_peri_march5
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    File URL: https://www.peri.umass.edu/fileadmin/pdf/published_study/Revenue_PERI_March5.pdf
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    References listed on IDEAS

    as
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    9. Jon Bakija & Adam Cole & Bradley Heim, 2008. "Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data," Department of Economics Working Papers 2010-22, Department of Economics, Williams College, revised Jan 2012.
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    12. repec:eme:rleczz:s0147-9121(2011)0000032004 is not listed on IDEAS
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    1. Tax-Hike Scare Goes Up in Thin Air
      by acmerecords in Firedoglake on 2013-12-02 02:30:34

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