Assignment:
Congress did not substantially change Federal income tax rates between 1993 and 2000. Visit the Bureau of Economic Analysis Web site, www.bea.gov. You can find Table 3.2 on the Federal government's current receipts and expenditures at:
https://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1
By selecting the "Modify" icon, you can select the time period of 1993-2000.
Find the annual revenues from the Federal income tax from 1993 to 2000. What happened to those revenues over those years? Given constant tax rates, what do the changes in tax revenues suggest about changes in the shape of the Laffer Curve? If lower (or higher) tax rates do not explain the changes in tax revenues, what do you think does?