>Does the following have any bearing on the Laffer Curve discussion? >""Hammermesh estimated that a 10-percentage point reduction in payroll taxes would lead >to a short-term 3 percent increase in employment and a long-term 10 percent increase in >employment United States."
It sure does. A ten percentage point drop is about a 2/3rds cut in payroll taxes which would be close to a 1/3rd cut in total revenue from income and payroll taxes combined. Obviously that is not going to come close to being offset by a 10% increase in work hours since that would increase revenue by less than 10% of its original value. Further, in my experience this is towards the upper end of such estimates. - - Bill Dickens William T. Dickens The Brookings Institution 1775 Massachusetts Avenue, NW Washington, DC 20036 Phone: (202) 797-6113 FAX: (202) 797-6181 E-MAIL: [EMAIL PROTECTED] AOL IM: wtdickens
