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IPFS News Link • Economy - Economics USA

Private pay shrinks to historic lows: Government-Provided Benefits Soar

05-25-2010 • usatoday.com/money

The trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. "This is really important," Grimes says.

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