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Question 1: It's 1996 and you are an economic advisor for the presidential candidate for the Republican party in the US. During the campaign the

Question 1:

It's 1996 and you are an economic advisor for the presidential candidate for the Republican party in the US. During the campaign the candidate refers to the Harberger 1995 paper and asks you to prepare some arguments in favor of a corporate tax rate cut from 50% to 10%.

Question 2:

It's 2000 the Republican party has been in power for four years and has lowered the corporate tax to 10%. You are now an economic advisor for the presidential candidate for the Democrats in the US. During the campaign the candidate refers again to the Harberger 1995 paper and asks you to prepare some arguments in favor of a corporate tax rate increase from 10% to 30%.

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