Economics of Macro Issues 7th Edition by Roger LeRoy Miller,Daniel Benjamin

Exercise 5

President Obama has said that when it comes to taxes "for some time now, when compared to the middle class, [the rich] haven't been asked to do their fair share." For this question, assume that people in the middle-income quintile are the middle class and that the people in the highest-income quintile are the "rich." Based on what you've learned in this chapter, would you agree with the president? Does your answer change if the "rich" are those people in the top 5 percent or top 1 percent?