The Economic Effects of the Dole Tax Plan
Table of Contents
Effects on Income
One of the criticisms of the Dole plan, other than that it would increase the federal deficit, is that those with high incomes would receive the greatest benefit. Much of the gain from the Dole proposals would indeed go to those who pay the greatest amount of taxes. However, the resulting increase in economic activity would benefit all income groups, including even those who pay little or no taxes. As Table IV shows:
- People with disposable incomes of less than $13,000 a year would average a gain of 3.8 percent.
- The smallest gain, 2.9 percent, would go to people with disposable incomes between $25,800 and $38,600 a year.
- People with disposable incomes of $64,500 or more would average a gain of 7.0 percent.