The Truth About Taxes

Ross Douthat speaks it:

Alas for liberals, the tax debate isn’t that simple, because it’s taking place in the context of immense projected future deficits and a welfare state that seems unsustainable without substantial increases in revenue. Given these realities, fairness and progressivity are necessarily less important to liberalism over the long run than . . . → Read More: The Truth About Taxes

Tax Stupidity

There are a lot of people calling for raising taxes. Tom Coburn (a Republican, it should be noted) is in favor of increasing tax revenue by raising nominal rates on the wealthy. Daniel Berger thinks it’s unfair that the rich (himself excepted, of course) don’t pay their fair share. These two stories, then, reveal . . . → Read More: Tax Stupidity

Tax Myths

Matt Yglesias:

A somewhat strange myth has taken hold in some precincts of American conservative opinion that some vast swathe of the population isn’t paying taxes. In fact everyone pays sales taxes and other state and local taxes, and as Adam Looney and Michael Greenstone write for the Hamilton Project almost all working-age people . . . → Read More: Tax Myths

International Economics

In which I disagree with Captain Capitalism:

Arguably the single largest threat to freedom in the world is the “harmonization” of tax rates. Of course politicians like to use euphemisms so the ignorant masses can continue on watching their Lady Gaga or the latest professional sports competition, but trust me it is a threat. . . . → Read More: International Economics

What went wrong with supply-side economics?

The economic crisis of 2008/2009 had confronted the mainstream economic theory with an unpalatable task of revisiting the notions and perils of the ideas which dominated the course of economic theory in the last few decades. In 2003, delivering a speech to the American Economic Association, Robert Lucas famously noted that the central problem . . . → Read More: What went wrong with supply-side economics?

Bush Tax Cuts and Economic Growth

In 2001 and 2003, former U.S president George W. Bush signed Economic Growth and Tax Relief Act (EGTRAA) and Jobs and Growth Tax Relief Reconciliation Act (JGTRAA). EGTRAA reduced personal income tax rates, increased child tax credit, decreased estate tax and introduced a various range of tax-favored retirement savings plans. In 2003 when EGTRAA . . . → Read More: Bush Tax Cuts and Economic Growth

The Lesson of Warren Harding Revisited

Though I have written extensively about the Recession of 1920, it is worth revisiting it per Glenn Beck’s show last night.  Beck rightly pointed out that the policies of decreased taxes and decreased government spending implemented by both Harding and Coolidge paved the way for the dramatic economic growth of the roaring 20s. What . . . → Read More: The Lesson of Warren Harding Revisited

A Modest Proposal for a Move to the Left

The “Laffer Curve” first came to public prominence back in the heyday of Reaganomics and “supply side” ideas. The concept is simple and, once you think about it, obvio

us (I say “once you think about it,” because even though it’s been around since the 14th century, it took Arthur Laffer to get people . . . → Read More: A Modest Proposal for a Move to the Left