Once the Republicans took the majority in Congress, they instructed the budget scorekeepers to do “dynamic scoring:” building macroeconomic feedback effects into their revenue estimates from proposed changes to tax policy. Because economists broadly assume that taxes distort decisions about activities with growth impacts, like labor supply or capital investment, cutting taxes often generates more… Read more
Over at the NYT’s Room for Debate forum. A key point here, as in so many cases, is it matters how you ask the question: “Instead of asking if Medicare and Medicaid are sustainable, we should be asking what we need to do to sustain them.”
Over at PostEverything, with thoughts on why they persist.
First, we’re not Greece by a huge long shot, and anyone who makes this comparison should be assiduously avoided (a bit more background here, if you like, but trust me on this one). Second, one way in which Greece really dropped its fiscal ball was in its failure to collect taxes. According to this piece,… Read more
I recently touted the benefits of a financial transaction tax (FTT), and in the intro, I made a comment about how our tax code is titled toward the wealthy. Chris Edwards very reasonably takes issue, correctly noting that our federal tax code is, in fact, quite progressive, meaning that low-income households face a much lower… Read more