Tag Archives: Taxes

Burying Supply-Side Once and for All by Neera Tanden

Neera Tanden has an interesting article in Democracy Journal on supply side economics. Supply-side economics assumes that lower tax rates boost economic growth by giving people incentives to work, save, and invest more. A critical tenet of this theory is … Continue reading

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Who Gets Tax Breaks? Tax Expenditures and Credits by Income Group

From Dylan Matthews: The CBO is out with a big new report on who gets what out of tax expenditures, the deduction, credits, and exclusions that have grown to cost the federal government hundreds of billions of dollars a year. Here’s the … Continue reading

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Apple, Avoidance, and Corporate Tax Incidence

In all the discussion over Apple today, remember that if labor bears the corporate tax, then companies avoiding it may actually end up helping workers. In other words, if workers end up picking up the tab (because capital is mobile/companies … Continue reading

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Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany

From Clemens Fuest, Andreas Peichl, and  Sebastian Siegloch: Because of endogeneity problems very few studies have been able to identify the incidence of corporate taxes on wages. We circumvent these problems by using an 11-year panel of data on 11,441 German … Continue reading

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The Role of Automatic Stabilizers in the U.S. Business Cycle

Alisdair McKay and Ricardo Reis have a new paper on automatic stabilizers with some interesting results on heterogeneous effects for different income groups. ABSTRACT: Most countries have automatic rules in their tax-and-transfer systems that are partly intended to stabilize economic … Continue reading

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What happens when top income earners receive smaller subsidies for retirement savings?

Raj Chetty, John N. Friedman, Soren Leth-Petersen, Torben Heien Nielsen, and Tore Olsen ask this question and answer it here. When individuals in the top income tax bracket received a smaller tax subsidy for retirement savings, they started saving less in retirement accounts….. but the … Continue reading

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The Congress-Does-Nothing Deficit Reduction Plan

This David Kamin article on future tax revenues and bracket creep is worth reading. Here are a couple highlights: Because of some long-standing elements of our system as well as clever provisions in the Affordable Care Act, taxes will actually … Continue reading

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Today’s Links: Tax Policy & Inequality and the Absence of Deflation

Partisan Tax Policy and Income Inequality in the U.S., 1979-2007 HT: Bruce Bartlett Why Don’t we have deflation?

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Labs of Democracy & Today’s Fiscal Policy Debates

Here’s my latest Economix column on the labs of democracy & today’s fiscal policy debates on uncertainty, spending, and spending vs taxes: Many of the fiercest disagreements about fiscal policy today stem from disagreements about the causes of the slow … Continue reading

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Fiscal Policy and MPC Heterogeneity

Tullio Jappelli and Luigi Pistaferri have a recent paper called Fiscal Policy and MPC Heterogeneity. Here’s an interesting figure from it that shows how MPC varies by cash-on-hand: They aren’t the only ones who document MPC heterogeneity. Dynan, Skinner, Zeldes  have a … Continue reading

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