Abstract:
It is the purpose of this paper to state with rigor and precision the pattern of tax rate reductions which will meet these requirements. The question is approached in Part I by means of a theoretical model with highly restrictive assumptions. After the required pattern of tax rate reductions is established for the simple model, the results are generalized sufficiently to talk about the present situation of the United States. In Part II, teh 1964-65 personal income tax cut is evaluated in the light of the theoretical analysis of Part I. Part III explores some further implications of the ideas discussed in Parts I and II.
