This Ricardian equivalence hypothesis holds that people are forward-looking and recognize that current government surpluses or deficits affect government debt and future tax rates.
Government tax rates in the future are not impacted by current government surplus.
mnli hypothesis: Government tax rates in the future are not impacted by current government surplus. premise: This Ricardian equivalence hypothesis holds that people are forward-looking and recognize that current government surpluses or deficits affect government debt and future tax rates.