Just finished testifying Committee on the state of the current recovery in front of the Joint Economic Committee, wherein I mixed it up with my old friend Larry Kudlow (he was the R’s witness), a great friend with whom I’ve strongly disagreed on matters economic for about twenty years.
Here’s a link to my testimony, which I plan to summarize forthwith.
But for now, I need to straighten out a mis-statement I made; it’s a weedy point, but an important one.
Larry K said that if you cut corporate taxes, 70% of the benefits of the tax cut will accrue to wage earners.
I said I believed that was too high and that I thought it was closer to 50-50 but I’d check.
In fact (h/t: CCH), here are the assumptions by the top tax analysts as to the share of business taxation borne by workers (and thus, the share of any corporate tax cuts that would accrue to them):
So, sorry to have misspoke on the breakdown here but and my inclination that Larry’s “70% of the benefits of a business tax cut would go to wage earners” was too high was correct.