We Have Run Out of Other People’s Money

Margaret Thatcher is remembered for her quote, “The problem with socialism is that you eventually run out of other people’s money.” The older definition of socialism of centrally controlled means of production has given way to an association with redistribution. You...

Tax Thoughts 2017 12 21

by Henry Oliner The drop in corporate taxes is huge, even though it only makes us competitive with other nations, but what happens to this savings? If it is paid in dividends, it is taxed.  If it is used to increase salaries, it is taxed.  Corporate taxes are an...

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 then it can not be...

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 to expire. A person who died in...