Testify!

July 15th, 2014 at 5:03 pm

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):

Joint Tax Committee: 0% within the 10 year budget window; 25% outside the window.
CBO: 25%
Tax Policy Center: 20%

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.

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One comment in reply to "Testify!"

  1. Peter K. says:

    Friday night on his HBO show, Bill Maher said trickle-down economics was one of the Republicans’ “zombie lies.”

    In other news Republicans buck the Tea Party over the highway fund and go with Moody Analytics.

    and:
    “In its 2013 long-term budget projections, CBO forecasted that the long-run average annual interest rate would be 3 percent. This year’s forecast has lowered that projection to 2.5 percent. This new projection is not only lower than previous forecasts but also lower than the average range of 3.1 over the period of 1990 to 2007.”

    http://equitablegrowth.org/news/importance-cbos-new-interest-rate-projections/


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