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Tax Tales

By Posted Tuesday, July 27, 1999, at 3:30 AM ET

Last week, the House of Representatives passed what would be the largest tax cut since the Reagan administration--close to $800 billion. The Republicans favor tax cuts, in part because they believe they stimulate economic growth. The Clinton administration says cuts bust the budget and hurt the economy. Who's right? In 1997, when Slate's Jodie T. Allen examined the data, she found that the stock market actually likes tax increases.

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