I shared this shower musing about a year ago:
why not index tax rates to GDP growth? The government has no trouble indexing the yield on TIPS to inflation. Why not set a baseline tax rate that's operative at, say, 3% GDP growth, adjustable down in a set ratio all the way to, say, a 3% contraction, and adjustable up all the way to, say 6% annual growth? Economic velocity will determine our GAIT (Growth Adjusted Income Tax).Yesterday, contemplating the possible gridlock-induced expiration of all the Bush tax cuts (no way...), Johnson proposed:
