In 2013 the government increased Social Security income taxes by 2 percentage points and increased the income tax rate on Americans making more than $400,000 by 4.6 percentage points. These tax hikes

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Tax increases generally reduce disposable income, which in turn reduces consumption. Since the multiplier effect is largely driven by consumption (as one person's spending becomes another person's income), reducing consumption would decrease the size of the multiplier.

In 2013 the Government Increased Social Security Income Taxes by 2