The Overlooked Factor in Tax Revenue: Money Velocity

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MoneyMan · in Economic Roundtable
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The Overlooked Factor in Tax Revenue: Money Velocity

The Overlooked Factor in Tax Revenue: Money Velocity

Money Velocity, Tax Rates, and Revenue: Why the Speed of Money Matters as Much as the RateMost discussions of tax policy treat revenue as a simple product of rates and a fixed base. Raise the rate, collect more money. Lower the rate, collect less. This arithmetic view is incomplete. Tax revenue is g...

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