Tilts in the tax code

July 30th, 2015 at 8:08 am

Over at PostEverything, with thoughts on why they persist.

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2 comments in reply to "Tilts in the tax code"

  1. Robert Salzberg says:

    A couple of days ago, Paul Krugman had a blog post titled Second Best Macroeconomics. Krugman wondered aloud whether economists spend way too much time on what is politically feasible and far too little time on good economic policies.

    Capping tax deductions at 28% might serve as a rational base if today’s Republicans would consider tax increases but they generally won’t.

    Scrapping all tax deductions, exemptions, and credits and replacing them with stand alone spending programs would expose all the cheating, lying, and distortions to the white hot spotlight of the politics of spending. Rats, cockroaches, and lobbyists dread the light of day. Why not propose economic policy that exposes them?

  2. Smith says:

    Need to include the 1%’s and .1%’s percentage of income from capital gains to understand why the issue looms so large. Raising marginal rates, as Piketty and others say is necessary to restore a more equitable income distribution will not be sufficient or return the economy to prosperity or counter r>g, if capital gains tax rates are capped as they are now.