Found 413 article(s) in category 'Monetary Policy'

Trump’s top economist’s tax analysis isn’t just wrong, it’s dishonest

Trump’s top economist’s tax analysis isn’t just wrong, it’s dishonest. Lawrence Summers, October 17, 2017, Opinion, “Kevin Hassett, the White House’s chief economist, accused me of an ad-hominem attack against his analysis of the Trump administration’s tax plan. I am proudly guilty of asserting that it is some combination of dishonest, incompetent and absurd. Television does not provide space to spell out the reasons why, so I am happy to provide them here.Link

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Hassett’s flawed analysis of the Trump tax plan

Hassett’s flawed analysis of the Trump tax plan. Lawrence Summers, October 17, 2017, Video, “Kevin Hassett, chair of the Council of Economic Advisers, accuses me of an ad-hominem attack against his economic analysis of the Trump administration’s tax plan. I am proudly guilty of asserting that it is some combination of dishonest, incompetent and absurd. TV does not provide space to spell out the reasons why, so I am happy to provide them here.Link

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Summers Says Trump Officials Are Making Things Up About Their Tax Plan

Summers Says Trump Officials Are Making Things Up About Their Tax Plan. Lawrence Summers, October 13, 2017, Video, “Former U.S. Treasury Secretary Lawrence Summers said officials in President Donald Trump’s administration are making false claims when it comes to tax reform.  “When you have — and I hate to be in a position of using this word about our government — when you have senior economic officials making claims that are made-up,” said Summers, who served under Democratic presidents Bill Clinton and Barack Obama, adding that “it’s very hard to have a dialogue, and compromise, and get to a good place.Link

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Rethinking Macroeconomic Policy: International Economy Issues

Rethinking Macroeconomic Policy: International Economy Issues. Gita Gopinath, October 10, 2017, Paper, “In this paper I make the following ten remarks on the topics of exchange rate policy, capital flow management, protectionism, and global cooperation: 1) The gains to exchange rate flexibility are worse than you think; 2) The ‘Trilemma’ lives on; 3) The U.S. dollar exchange rate drives global trade prices and volumes; 4) Gross capital flows matter as much as net flows, and global banks have internationalized U.S. monetary policy. 5) Emerging markets tilt away from foreign currency to local currency debt reduces their exposure to global risk factors; 6) Low interest rate environments can lead to misallocation of resources and lower productivity; 7) The relationship between global imbalances, reserve accumulation, and currency manipulation is not well identified. 8) Uniform border taxes are not neutral; 9) Trade is not the main driver of earnings inequality, but at the same time policy has failed to address its redistributive consequences. 10) Global coordination of financial regulation is essential alongside country level macroprudential polices. Reserve accumulation and currency swap lines do not substitute for the lender of last resort role of the IMF.” Link

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The Trump Administration’s Tax Plan is an Atrocity

The Trump Administration’s Tax Plan is an Atrocity. Lawrence Summers, October 9, 2017, Opinion, “The Trump administration’s tax plan is not a plan. It is a melange of ideas put forth without precision or arithmetic. It is not clear enough to permit the kind of careful quantitative analysis of its expected budget costs, economic effects and distributional implications that precedes such legislation in a serious country.Link

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Directions for International Tax Reform:, Hearing Before the U.S. Senate Committee on Finance, Hearing on International Tax Reform

Directions for International Tax Reform:, Hearing Before the U.S. Senate Committee on Finance, Hearing on International Tax Reform. Stephen Shay, October 3, 2017, Paper, “Testimony before the U.S. Senate Committee on Finance Hearing on International Tax Reform, October 3, 2017. Objectives for Tax Reform. Tax reform should maintain or enhance our tax system’s current level of progressivity in distributing tax burdens and benefits. The most significant social welfare fact today is that the income of middle and lower income workers has stagnated in recent decades and a disproportionate share of income growth has accrued to those with highest incomes—the top 1%. While we have recovered from the recession and middle and lower income workers have made some gains, the disparity between high-income and middle- and lower-income has grown substantially and income mobility is more constrained than for prior generations. The taxation of cross-border income of U.S. MNCs should be analyzed under the same fairness standards that apply to any other income.Link

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Expanding the Earned Income Tax Credit for Workers Without Dependent Children

Expanding the Earned Income Tax Credit for Workers Without Dependent Children. Lawrence Katz, September 2017, Paper, “In recent decades, wage inequality in the United States has increased and real wages for less-skilled workers have declined. As a result, many American workers are unable to adequately support their families through work, even working full time. The Earned Income Tax Credit (EITC) has helped to counter this trend and has become one of the nation’s most effective antipoverty policies. But most of its benefits have gone to workers with children. The maximum credit available to workers without dependent children is just over $500, and workers lose eligibility entirely once their annual earnings reach $15,000.Link

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The Tax Reform Agenda

The Tax Reform Agenda. Martin Feldstein, September 26, 2017, Opinion, “The good news about our tax system is that, over the years, our tax rules have been getting better. Those who write the tax laws have been listening to the advice of economists — or at least what they have been doing for other reasons is in line with what economists have advised.  High tax rates that distort incentives and create large deadweight losses have been reduced: the top marginal rate of the personal income tax has come down from 92 percent to 40 percent now, and the corporate tax rate has come down from 50 percent to 35 percent. It has been possible to lower rates in that way by eliminating a variety of tax loopholes, i.e., tax accounting rules that allow taxable income to be less than economic income. So we have a less distorting — a more efficient — tax system than we did in the past.Link

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