Category Archives

Archive of posts published in the category: Taxes

The Counterproductive Estate Tax

by Henry Oliner
The estate tax is less of a transfer from the rich to the poor than it is a transfer from one group of wealthy to other wealthy special interests.  The great beneficiaries of estate taxes are tax lawyers and accountants, insurance companies, and wealthier businesses who use the pressure of the estate taxes to acquire other firms and grow larger.

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Rebel Yid Tax Proposal 2017 11 29

A flat 5% rate ON ALL INCOME. Earned, unearned, dividends, capital gain, muni bond, treasuries. THEN A $10,000 personal exemption. $20,000 per couple. A 10% tax on all earned income above that. The first $100,000 of dividends and investment income…

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Tax Thoughts 2017 11 29

by Henry Oliner Corporate tax cuts are opposed because the company will not spend it as the political brokers wish.  There is no guarantee they will use it to create jobs.  But having a more competitive tax rate may make…

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Neutered Tax Cuts

The drive for tax cuts obscures the greater benefit of tax reform and simplification.  Taxes, however, are only a single component of friction costs. If the purpose of tax reform or tax cuts is to stimulate investment and productive activity…

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The Real Loser from Tax Reform

From my article in American Thinker, Save the Swamp: I call the difference between the statutory rate and the actual rate the ‘special interest spread’.  It is the difference between the official stated rate and the actual rate paid after…

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The Social Engineering Trap

From Kevin Williamson at National Review, A Conservative Tax Hike The federal government uses the tax code for all sorts of social-engineering purposes: to encourage and subsidize investment in manufacturing or green-energy businesses, to reward charitable giving, to encourage home-ownership. The…

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Let California Be California

From Kevin Williamson at National Review, A Conservative Tax Hike Eliminating deductibility for state and local income taxes is of course politically satisfying for mean-spirited conservatives such as myself — it constitutes a very substantial tax increase on the sort of…

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True Tax Reform

from An Anti-Growth Tax Cut by Kevin Williamson in The National Review In economic terms, there are two things going on with those revenue and deficit numbers. One is the structural issue, i.e., tax policy, spending, etc. The other is…

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Cherry Picking Tax Policies

from Kevin Williamson at National Review, The U.S. Is Not the Highest-Taxed Nation in the World The problem for the Left is that Democrats cannot, under most circumstances, tell the truth about U.S. taxes, either, because the American middle class does…

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Statutory vs Actual Tax Rates

from Kevin Williamson at National Review, The U.S. Is Not the Highest-Taxed Nation in the World We do have an extraordinarily high top corporate-tax rate — on paper, anyway. Our statutory top corporate rate is among the highest in the world,…

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The Need for Permanence in the Tax Code

from The WSJ, Phil Gramm and Michael Salon, Reagan Cut Taxes, Revenue Boomed:  As inflation plummeted from the CBO’s projected average annual rate of 8.3% for 1982-86 to an average of 3.8%, revenue compared with projections tumbled $22 billion in 1982…

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Addicted to the Devil

from Thomas Donlan at Barron’s, What Went Wrong in Kansas Americans want government like they want services generally: “faster, better, and cheaper.” But economists know there’s a problem: The optimistic ones say, “Pick any two”; the pessimists say, “Choose one.”…

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Tax Psychotherapy

Another gem  from Kevin Williamson at National Review, Bad Medicine on ‘Carried Interest’ Nobody in Washington wants to face that particular angry mob of IRA investors with torches and pitchforks. What we are talking about is singling out a particular…

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A Better Way to Tax the Rich

Some advice for the new president from economist John Cochrane in the Wall Street Journal, Don’t Believe the Economic Pessimists: The ideal tax system raises revenue for the government while distorting economic decisions as little as possible. A pure tax…

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The Cost of a High Estate Tax

From The NYT and economist Greg Mankiw,  Why Taxing Fairly Means Not Taxing Inheritances: Excerpt: But there is one thing that everyone can agree on: The estate tax you owe should not depend substantially on the exact moment you happen…

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Violating Horizontal Equity

From The NYT and economist Greg Mankiw,  Why Taxing Fairly Means Not Taxing Inheritances: Excerpt: From my perspective, the estate tax is a bad way to tax the rich because it violates a principle that economists call horizontal equity. The…

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The Loss of American Competitiveness

from The Great Degeneration by Niall Ferguson Experts on economic competitiveness, like Michael Porter of Harvard Business School, define the term to include the ability of government to pass effective laws; the protection of physical and intellectual property rights and lack of…

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A Hard Shift Left

from The Wall Street Journal, Fred Barnes writes The No-Growth Democratic Party In 1997 President Bill Clinton signed the Taxpayer Relief Act, cutting the tax rate on capital gains to 20% from 28%. Senate Democrats voted 37-8 in favor of the bill.…

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Jaded at Tax Reform

From Robert Samuelson at The Washington Post, The coming middle-class tax increase There is a broader message here. Both parties have constructed rationales for avoiding middle-class tax increases, which would be highly unpopular. It’s not that these rationales are illegitimate: The…

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Driving Corporations Overseas

from the Wall Street Journal, The Corporate Tax Political Divide  ‘Why is the tax code making it better for foreign companies to invest in the United States than U.S. companies?” That was the pungent question posed by Pfizer Chairman and CEO Ian Read in an…

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