More Battles over Tax Burdens
1. Because of the deficit and other factors, there will be a continual testing of sentiment to retain or raise top marginal tax rates.
2. The historical record does not support charges that the Federal tax system has become much less progressive and rewards the rich.
3. The specific way the Tax Reform Act of 1986 was crafted leaves an opening for top rate hikes, but, if rates are raised, they will have to reach down to at least the upper-middle income groups to realize significant revenues.
4. Fiscal policy restraint and value-added taxation are viable alternatives to income tax increases.
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