The simple relationships between the private saving ratio and the top tax rates are displayed in the top two charts in Figure 3. 22 Each point represents the private saving ratio and top tax rate for each year since 1945. The nature of the relationship is illustrated by the straight line in the figure, which graphically represents the correlation (fitted relationship or fitted values) between the two variables. 23 The slope of the fitted values line indicates how one variable changes when the other variable changes. For both the top statutory marginal tax rate and the top statutory capital gains tax rate.
