Found 20 article(s) for author 'Taxes'

My Best Growth Forecast Ever

My Best Growth Forecast Ever. Robert Barro, April 29, 2019, Opinion, “The Trump administration’s tax reform of 2017, which took effect in 2018, was viewed prospectively, and now retrospectively, as a contributor to US economic growth. But there was – and remains – a great deal of controversy over the size of the macroeconomic effects of the tax changes.Link

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A ‘wealth tax’ presents a revenue estimation puzzle

A ‘wealth tax’ presents a revenue estimation puzzle. Lawrence Summers, April 4, 2019, Opinion,“Sen. Elizabeth Warren (D-Mass.) recently proposed a 2 percent “wealth tax” on those worth more than $50 million. Emmanuel Saez and Gabriel Zucman, economists at the University of California at Berkeley, have played a major role in developing and validating this proposal. They estimate that the tax would raise $187 billion in 2019 (Warren’s additional 1 percent “billionaire surcharge” brings their total revenue estimate to $212 billion). This represents a substantial sum and has been widely quoted in both academic and policy discussions of wealth taxation.Link

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Do Tax Cuts Produce More Einsteins? The Impact of Financial Incentives vs. Exposure to Innovation on the Supply of Inventors

Do Tax Cuts Produce More Einsteins? The Impact of Financial Incentives vs. Exposure to Innovation on the Supply of Inventors. Raj Chetty, January 2019, Paper, “Many countries provide financial incentives to spur innovation, ranging from tax incentives to research and development grants. In this paper, we study how such financial incentives affect individuals’ decisions to pursue careers in innovation. We _first present empirical evidence on inventors’ career trajectories and income distributions using de-identified data on 1.2 million inventors from patent records linked to tax records in the U.S. We find that the private returns to innovation are extremely skewed – with the top 1% of inventors collecting more than 22% of total inventors’ income – and are highly correlated with their social impact, as measured by citations. Inventors tend to have their most impactful innovations around age 40 and their incomes rise rapidly just before they have high-impact patents. We then build a stylized model of inventor career choice that matches these facts as well as recent evidence that childhood exposure to innovation plays a critical role in determining whether individuals become inventors.Link

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The Trump Tax Cuts Boosted Growth and Jobs, but at What Cost?

The Trump Tax Cuts Boosted Growth and Jobs, but at What Cost? Jason Furman, December 18, 2018, Opinion, “It has been nearly a year since President Trump signed sweeping tax changes into law. The macroeconomic data already rule out some of the more extravagant claims about immediate jumps in wages and capital. But the more serious debate over the tax cuts’ long-run impact is still far from decided. Here’s what we do know..Link

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Three (almost) inexplicable parts of the Republican tax plan

Three (almost) inexplicable parts of the Republican tax plan. Lawrence Summers, November 5, 2017, Opinion, “With the release of the Republican tax proposal, the most important tax debate in a generation is in full swing. Most reasonable experts agree that tax reform has the potential to spur investment and raise wages while also simplifying the system and increasing its fairness and legitimacy. The right question for debate is not the desirability of tax reform or even of business tax reform directed at spurring investment. It is the likely economic effect of particular proposals.Link

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The Business Roundtable’s outlandish tax cut claims

The Business Roundtable’s outlandish tax cut claims. Lawrence Summers, October 23, 2017, Opinion, “I think of myself as pro-business. I frequently counseled the Obama administration that “business confidence is the cheapest form of stimulus,” and during my times in government have found meetings with business leaders very helpful in understanding economic policy challenges. So when the Business Roundtable (BRT) does an analysis, I pay close attention.Link

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One last time on who benefits from corporate tax cuts

One last time on who benefits from corporate tax cuts. Lawrence Summers, October 22, 2017, Opinion, “I recently asserted that Kevin Hassett deserved a failing grade for his “analysis” projecting that the Trump administration proposal to reduce the corporate tax rate from 35 to 20 percent would raise the wages of an average American family between $4,000 to $9,000. I chose harsh language because Hassett had, for what seemed like political reasons, impugned the integrity of people like Len Burman and Gene Steuerle who have devoted their lives to honest rigorous evaluation of tax measures by calling their work “scientifically indefensible” and “fiction.” Since there have been a variety of comments on the economics of corporate tax reduction, some further discussion seems warranted.Link

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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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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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