[altairprime]

The Fed is responsible for controlling inflation; if taxation of excess business growth (relative to household spending power) beyond the inflation target serves that purpose, then how businesses choose to spend the excess growth (to avoid tax penalties) — either by lowering the price level and/or raising total wages paid — is entirely up to each business to determine in their specific circumstance and industry.

[bpt3]

I don't understand your point.

I agree tax rates are disinflationary in theory and I believe in practice to an extent, so it could be another tool in the Fed's toolbox but not one I think they want to have or one that Congress is willing (or arguably able on their own, though they wouldn't have to if the Fed's role were just advisory) to give up.

But what does that have to do with the paper you posted?

[altairprime]

Ah, we both agree on the reality of an unwilling Congress, for sure :) I misunderstood your request for a paper as topic unfamiliarity, apologies; feel free to disregard the link posted.