WaPo | Tuesday’s tax increase is the biggest in decades

The broad increase in taxes likely to occur Tuesday is highly unusual by historical standards.

Based on data from the Treasury Department and Moody’s Analytics, here’s a chart showing, for tax increases since 1940, the magnitude of the tax hike in the year following enactment as a percentage of gross domestic product. The three red bars represent options for what will happen starting tomorrow.

But tax hikes have been a rarity recently. Also drawing on data from the Treasury study, here is a chart showing the one-year revenue effects, as a percentage of GDP, of different policy actions.

More.



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