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Daily Archives: September 18, 2012

CRS – Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945

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Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945. Thomas L. Hungerford, Specialist in Public Finance, September 14, 2012

  • “Income tax rates have been at the center of recent policy debates over taxes. Some policymakers have argued that raising tax rates, especially on higher income taxpayers, to increase tax revenues is part of the solution for long-term debt reduction. For example, the Senate recently passed the Middle Class Tax Cut (S. 3412), which would allow the 2001 and 2003 Bush tax cuts to expire for taxpayers with income over $250,000 ($200,000 for single taxpayers). The Senate recently considered legislation, the Paying a Fair Share Act of 2012 (S. 2230), that would implement the Buffett rule by raising the tax rate on millionaires… Throughout the late-1940s and 1950s, the top marginal tax rate was typically above 90%; today it is 35%. Additionally, the top capital gains tax rate was 25% in the 1950s and 1960s, 35% in the 1970s; today it is 15%. The real GDP growth rate averaged 4.2% and real per capita GDP increased annually by 2.4% in the 1950s. In the 2000s, the average real GDP growth rate was 1.7% and real per capita GDP increased annually by less than 1%. There is not conclusive evidence, however, to substantiate a clear relationship between the 65-year steady reduction in the top tax rates and economic growth. Analysis of such data suggests the reduction in the top tax rates have had little association with saving, investment, or productivity growth. However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution.”
  • Related postings on the financial system

    • New on LLRX – Bluebook Technologies

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    Via LLRX.com: Bluebook Technologies – The Bluebook is the standard citation guide for legal materials. There are now three format choices for the Bluebook: paper, online subscription (since 2008), and as of August 10, 2012 – iPad app. Law Librarian, author, research instructor and blogger Mary Whisner’s guide discusses and illustrates the features and pricing… Continue Reading

    Report – The Financial Status and Decision-Making of the American Middle Class

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    “This report focuses on the financial status and decision-making of the American middle class. It is based on two recent sources: An analysis of data found in the recently released Federal Reserve Board’s 2010 Survey of Consumer Finances undertaken, for Primerica and the Consumer Federation of America, by Professor Catherine Montalto of The Ohio State… Continue Reading

    The Mortgage Market in 2011: Highlights from Data Reported under Home Mortgage Disclosure Act

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    The Mortgage Market in 2011: Highlights from the Data Reported under the Home Mortgage Disclosure Act. Robert B. Avery, Neil Bhutta, Kenneth P. Brevoort, and Glenn B. Canner “This article presents a number of key findings from a review of the data that mortgage lending institutions reported for 2011 under the Home Mortgage Disclosure Act… Continue Reading

    New GAO Reports – Unmanned Aircraft Systems, TARP Oversight, DHS Info Sharing, Census Info Technology, Security for Mobile Devices

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    Unmanned Aircraft Systems – Measuring Progress and Addressing Potential Privacy Concerns Would Facilitate Integration into the National Airspace System [Reissued on September 18, 2012] GAO-12-981, Sep 14, 2012 Financial Markets and Institutions – Treasury Continues to Implement Its Oversight System for Addressing TARP Conflicts of Interest, GAO-12-984R, Sep 18, 2012 Information Sharing – DHS Has… Continue Reading

    Economic Freedom of the World: 2012 Annual Report

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    “The index published in Economic Freedom of the World 2012 measures the degree to which the policies and institutions of countries are supportive of economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of privately owned property. Forty-two variables are used to construct a summary index and… Continue Reading

    Whistleblower Protections Under Federal Law: An Overview

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    Whistleblower Protections Under Federal Law: An Overview. Jon O. Shimabukuro, Legislative Attorney and L. Paige Whitaker, Legislative Attorney, September 13, 2012 “Legal protections for employees who report illegal misconduct by their employers have increased dramatically since the late 1970s when such protections were first adopted for federal employees in the Civil Service Reform Act of… Continue Reading

    Author's Guild – Court Approves Justice Department's E-Book Proposal

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    News release: “Judge Denise Cote approved the Justice Department’s controversial settlement with three major publishers — Hachette, HarperCollins, and Simon & Schuster — in a 45-page decision filed [September 6, 2012]. The settlement requires the publishers to allow e-book retailers to sell their books at any price, even below cost, so long as the retailer… Continue Reading