The best idea I heard today

…in a wonderful but still unpublished paper titled "Should Taxes Be Independent of Age?" my Harvard colleague Michael Kremer suggests that younger workers should face lower income tax rates than older workers.

Quite simply the elasticities of the young are larger; Greg Mankiw has more.  Get this:

Kremer estimates that young workers are about four times more responsive to work incentives than the middle aged.


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