An income tax Suppose the U S Congress decides to levy an income tax on both wage income and capital income Instead of receiving wL rK Y, consumers receive (1 t)wL (1 t)rK (1 t)Y Trace the consequenc...

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An income tax Suppose the U S Congress decides to levy an income tax on both wage income and capital income Instead of receiving wL rK Y, consumers receive (1 t)wL (1 t)rK (1 t)Y Trace the consequences of this tax for output per worker in the short and long runs, starting from steady state ...

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An income tax. Suppose the U.S. Congress decides to levy an income tax on both wage income

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Introduction To Economic Growth