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Explain the potential supply-side effects of paul ryan tax

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Reference no: EM132435625

Paul Ryan has proposed replacing the corporate income tax, which is among the highest in the industrialized world, with what he calls a business consumption tax but what is in effect a tax of a firm's value-added. He proposes that this tax be set at 8.5%, which is half that of the value0adderd taxes in the rest of the industrialized world.

  • Explain the potential supply-side effects of Paul Ryan's tax plan,
  • Where on the Laffer curve do you think Paul Ryan believes the U.S. economy lies?

Reference no: EM132435625

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