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The Impact of Social Structure on Economic Outcomes

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In the public debate over these policies, however, a number of potential concerns have been raised. Some policymakers worry that higher taxes might cause affluent households to work fewer hours, to decide against investing or starting a new business, to shield their income from taxes through shelters, or even to move to another state. But the research reviewed in this study suggests that modest tax increases on affluent households are unlikely to make substantial changes in their work effort or entrepreneurship, and they are very unlikely to leave the state....
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The Impact of Social Structure on Economic Outcomes

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