Macroeconomic effects of tax changes: Estimates from a new measure of fiscal shocks
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Few issues in American politics prompt more partisan passions and conflicting points of view than tax policy. One would think that there would be a definitive historical record of successes and failures that could inform future policy, but since other macro economic trends are operating at the same time, it can be difficult for economists to isolate the impact of tax cuts and hikes independent of these confounding factors.