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Good news!

- October 11, 2010

Greg Mankiw calculates his marginal tax rate as 80%. Two years ago, he estimated that his marginal tax rate under an Obama administration would be 93%. (1-0.80)/(1-0.93)=2.9, so . . . Mankiw is actually keeping 290% of the amount of money he was expecting to keep.

Details here.

P.S. I wasn’t really following the details of Mankiw’s calculation. Given the dramatic change in only two years, I assume his numbers must depend on some highly time-sensitive parameters.