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Sunday, January 18, 2015

'Driving the Obama Tax Plan: The Great Wage Slowdown'

David Leonhardt:

Driving the Obama Tax Plan: The Great Wage Slowdown: The key to understanding President Obama’s new plan to cut taxes for the middle class is the great wage slowdown of the 21st century. ... There is little modern precedent for a period of income stagnation lasting as long as this one. ...
The wage slowdown is the dominant force in American politics and will continue to be as long as it exists. ...
No politician, of either party, can quickly alter the basic forces behind the great wage slowdown. That’s why Mr. Obama has begun talking about a tax cut for the middle class, to be financed by a tax increase on the affluent — who have continued to do quite well in recent years. It’s also why several conservatives are talking about a cut in the payroll tax, the largest federal tax for most Americans.
And you can expect the 2016 presidential candidates to talk about middle-class tax cuts, too. ...

    Posted by on Sunday, January 18, 2015 at 09:50 AM in Economics, Income Distribution | Permalink  Comments (32)


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