Effect on Economy        A Damper on Business Growth     The Real Cost of Death Taxes     Effect of Tax Cuts     Revenues Raised         A Damper On Business Growth   To match the disincentive effect of the Estate Tax, Income Taxes would have to be raised to roughly 70% or almost twice the current top marginal Income-Tax rate of 39.6%.   Source: Tax Foundation Study, "An Analysis of the Disincentive Effects of the Estate Tax on Entrepreneurship"     The Real Cost of Death Taxes If estate and gift taxes had been eliminated in 1999, by 2010...   Source: IPI Policy Report #150         EFFECT OF TAX CUTS       1980's: President Reagan's dual tax cuts reduced the top tax rate from 70% to 28%.   The result: The economy grew by 32% and tax revenues increased by 99.4%.       1960's: Tax cuts inspired by President Kennedy reduced the top rate from 91% to 70%.   The result: The economy grew by 42%, and tax revenues increased by 62%.       1920's: The top income tax rate was reduced from 73% to 25%.   The result: The economy grew by 59%, and tax revenues increased by 61%. Source: The Heritage Foundation