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Ry, 1999 Abstract This paper examines the responsiveness of taxable income to changes in marginal tax rates using detailed compensation data on several thousand corporate executives from 1991 to 1995. The data confirm that the higher marginal rates of 1993 led to a significant decline in taxable income. Indeed, this small group of executives can account for as much as 20% of the aggregate change in wage and salary income for approximately the one million richest taxpayers; one person alone can a.

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