From Boston.com:
On a conference call with reporters, Romney advisers ripped the study — conducted by the Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute — as “biased” and “a joke.”
Category Archives: taxes
Data on Tax Rates, by Quintiles
Or, where have you gone, Todd Henderson?
CBO’s Budget and Economic Outlook: Tax Expenditures
The CBO has just released the Budget and Economic Outlook. The document is full of extremely useful information, and provides a useful anodyne for some of the reality-free analyses floating around (examples here). For now, I’ll just highlight two interesting graphs regarding tax expenditures:
Tax Changes, Revenue Impacts, Conditional Statements, and Other Things that Befuddle the Statistically Disinclined
Or, a weblog post for the benefit of those unable to read beyond a technical paper’s abstract, a clarification of what exactly Romer and Romer (2010) found regarding the impact of tax increases on tax revenues. This note is inspired by Econbrowser reader Ricardo (who also goes under the monikers of RicardoZ, Dick, and DickF) who inaccurately (but with inexplicable confidence) characterizes the Romer and Romer findings regarding tax changes in my last post’s comments:
The Hill: “Senate rejects million-dollar tax-cut compromise in Saturday session”
Or more clearly, all Senate Republicans plus one four Democrats reject a tax cut for incomes below one million dollars. From The Hill:
Republicans had held firm in recent weeks that the tax cuts — designed to benefit the wealthiest Americans — should be permanently extended as a whole. Democrats had argued that only the cuts for the middle class should be extended, also blasting Republicans for failing to propose any spending cuts or revenue increases to pay for all of the cuts.
Assessing Fantasy Scenarios
With the EGTRRA/JGTRRA extensions and proposals for tax reform and debt reduction flying left and right, I think it behooves us to review what the theoretical (well, actually undergraduate textbook) literature and the empirical assessments suggest will be the impact of tax rate changes. I want to devote special attention to the hypothesis that there will be large dis-incentive effects on high income households should their tax rates go up, with correspondingly large negative ramifications for overall economic activity.
Detachment from Reality and Innumeracy as Impediments to Rational Discourse
Tax cut version
Let Bush Be Bush…on Taxes
Recall the 2001 and 2003 tax cuts were written to expire, for the most part, in FY2011. I wrote in February that one way to start fixing the Nation’s finances is to let the EGTRRA and JGTRRA expire as they were originally designed to. Via EconomistMom comes Bill Gale’s additional reasons why we should, despite the lackluster recovery [0] (more on that below).
Fiscal Implications of the Candidates’ Plans
I think now is the time to consider the fiscal implications of the candidates’ budget — and particularly tax — plans, especially considering the revenue declines and outlays that will confront the next President. Indeed, I would say imminent revenue declines will place an even greater premium on sensible tax plans, and efficient use of Federal dollars. Figure 1 displays the budget surplus to GDP ratio, both actual and CBO baseline.
Corporate tax policy, budget deficits and the capital stock in a neoclassical model of investment
Or, What would be the net effect on investment of the McCain tax plan?