| Elasticity too high Επιχ.Υποστήριξης1 #232170 In his original paper Feldstein assumes that raising the after-tax share of earnings an individual keeps by 10% increases taxable income by 5% - the elasticity of the tax base is 0.5 - reducing the cost of rate reduction by $33 billion. Critics claim this elasticity is too high. |
[NEED CRITICS CITATION] |