Tag Archives: Tax Cuts for Whom

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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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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Tax Cuts for Whom Presentation at the All-UC Huntington Library Conference

I’ll be presenting these slides tomorrow at the All-UC & Cal Tech Conference on Economic and Political Inequality: Social Mobility, Economic Growth, and Inequality tomorrow.

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Boosting Growth: The Spending and Debt Responses to Minimum Wage Hikes

Aaronson, Daniel, Sumit Agarwal, and Eric French have a recent AER paper on the consumption patterns of households with minimum wage recipients following minimum wage increases. Immediately following a minimum wage hike, household income rises on average by about $250 per … Continue reading

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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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Tax Cuts for Whom? Do tax changes for high income taxpayers generate more growth than similarly sized tax changes for lower income taxpayers?

        This figure, which is from a recently revised and submitted paper of mine, shows how the multiplier varies across the income distribution. It shows that equivalently sized tax changes for lower income groups have larger macroeconomic impacts on … Continue reading

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Quick Comments Welcome – Tax Cuts for Whom Draft

I’m planning on submitting this paper soon after making a few minor corrections and running a couple robustness checks, so please let me know if you have any comments or suggestions on it in the next week or two. Thanks! ABSTRACT: This … Continue reading

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Lessons from a Half Century of Federal Individual Income Tax Changes

This chart shows how income tax liabilities have changed each year for the five income quintiles over the past half century.  Here are a few things to notice: We love cutting income taxes. Almost all of the changes are tax … Continue reading

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The Growing Burden of Payroll Taxes

Here’s a column on reforming the payroll tax that I wrote in NYTimes Economix today: Payroll taxes and corporate income taxes accounted for an equal share of federal tax revenue in 1969. By 2009, payroll taxes generated more than six times as much … Continue reading

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