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Article: Taking the "voodoo" out of supply side economics.
- Article from:
- USA TODAY
- Article date:
- November 1, 1997
- Author:
CopyrightCOPYRIGHT 1997 Society for the Advancement of Education. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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"Data from the Reagan presidency, the last time supply side economics actually was applied, confirms that tax rate reductions were followed by significant improvements in employment, output, and income."
The most interesting aspect of Steve Forbes' campaign for the 1996 Republican presidential nomination was the media's reaction to his proposal to scrap the voluminous income tax code in favor of a simple flat tax. The term "flat tax" was mentioned frequently in the evening recap of campaign activities, but the plan's nuts and bolts seldom were the subject of detailed analysis.
The media's response was based on three assumptions. First, Forbes was ...