Senate Approves Tax Cut Plan The U.S. Senate has passed legislation to extend the Bush-era tax cuts for high-income earners to middle-class Americans earning up to $250,000 per year. Source: The Financial Times, July 26, 2012

Fact: Middle and low-income earners spend almost all their disposable incomes. High-income earners save a significant part of their disposable incomes. 9. a. Explain the intended effect of extending tax cuts to middle-class Americans but not for high-income families. Draw a graph to illus-trate the intended effect.

b. Explain why the effect of tax cuts depends on who receives them.

(Parkin, 20180405)

Parkin, M.(20180405). Macroeconomics, 13th Edition [VitalSource Bookshelf version].Retrieved from vbk://9780134789217

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