To reduce the size of the deficit (and reduce the growth of the net public debt), a

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To reduce the size of the deficit (and reduce the growth of the net public debt), a politician suggests that "we should tax the rich." The politician makes a simple arithmetic calculation in which he applies the higher tax rate to the total income reported by "the rich" in a previous year. He says that this is how much the government could receive from increasing taxes on "the rich." What is the major fallacy in such calculations?
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Economics Today

ISBN: 978-0132554619

16th edition

Authors: Roger LeRoy Miller

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