Suppose that political candidates in an election are trying to develop their policy positions regarding how high to set the top marginal tax rate. The numbers break down as shown in Table 22P-3. If the political system is a two-party system, will a candidate who believes the top marginal tax rate should be 30 percent be more likely to announce support for a marginal tax rate below 30 percent, above 30 percent, or exactly 30 percent?Table 22P-3:
Suppose that political candidates in an election are trying to develop their policy positions regarding how high to set the top marginal tax rate.”
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