Use relevant evidence

In October 2017, the Council of Economic Advisers, an agency within the office of the President, released a short report on the effect of a large proposed corporate tax cut on wage growth. The only graphical evidence included is

The presentation is clear, but a graph like this raises the obvious questions: Are these countries similar to the United States? What is significant about these four years?

Presumably the CEA has access to more clearly relevant data.

An analysis by the Economic Policy Institute comes to a very different conclusion. It includes this graph

The evidence is less compelling. You could argue that the 1986 corporate tax cut led to a modest increase in compensation, perhaps through productivity growth. Or perhaps the tax cut interrupted the decades long decline of compensation growth. In any case the United States has not experienced a compensation growth of 2% or more for at least 40 years.

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