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Archive of posts published in the tag: Taxes

Tax Thoughts 2017 12 21

The Democrats must be in a catch 22 with this bill; the limitation of state income and property taxes will more than offset the lower STATUTORY rates and many of the wealthiest will see an EFFECTIVE tax increase. Most of the benefits go to the middle and lower tax brackets.

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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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Poorly Suited for Central Planning

from National Review and Jay Cost,  Congress Wasn’t Designed to Handle Tax Policy To put it bluntly, Congress is not well suited for national economic planning, which is basically what pro-growth tax policies boil down to. As a matter of fact,…

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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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The True Function of the Corporate Income Tax

From Holman Jenkins at The WSJ, Harmonize this Eurocrats,  What about the undoubted problem of companies like Apple shielding their globally earned profits behind a small country’s friendly tax regime? There’s a remarkably sanitary solution: Get rid of the corporate…

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Hypocrisy Knows No Bounds

  If a doctor of oncology treats a thousand patients, but five hundred of them die, is he still a good doctor? If a preacher saves a thousand souls but one hundred end up in hell is he still a…

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Known and Unknown Risks

No government policy can remove the risk of investment; the best they can do is not add to the risks by adding uncertainty to the environment. The reason that strangers from all over the country will congregate to a blackjack…

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Zombie Taxes

Economist John Cochrane wrote a 10,000 word essay, Economic Growth.  Scott Grannis blogged some excerpts here:  a few of them: When we say broaden the base by removing deductions and credits, we should be serious about that. Thus, even the holy trinity of…

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Separate the Tax Code and The Subsidy Code

From John Cochrane at The Grumpy Economist, Economic Growth This is part of a 10,000 word essay that is worth every second of the time it takes to read. The central goal of a growth-oriented tax system is to raise…

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Inert Blocks of Wood

From Thomas Sowell at National Review, What Democrats Mean by ‘Paying Your Fair Share’ Whether in politics or in the media, words are increasingly used, not to convey facts or even allegations of facts, but simply to arouse emotions. Undefined…

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A Low Information President

From The Washington Times, Lewis Uhler and Peter Ferrara write The rich pay more than their fair share. Excerpts: The latest CBO report shows that the top 20% of income earners pay 70% of all federal taxes, while earning just over 50% of before…

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Are The Rich Paying Their Fair Share?

Scott Grannis posts in his blog,  Calafia Beach Pundit, Tax Shares Update: In 2011, it took $389K or more of adjusted gross income to make it into the top 1% of income earners, and they paid 35% of all federal income…

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Encouraging Conspicuous Consumption

I meet every couple of months with a couple of small groups of diversified small businesses in the Southeast. Here is what I am hearing. Few are making any significant capital expenses.  Taxes are too high and conditions are too…

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The Other Taxes

While tax rates are often stated as the burden on individuals and businesses there are other “mandated expenses” that are much more insidious.  Federal agencies are often charged with funding themselves with fines and penalties. Much too often these fines…

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Everything is not Enough

Justin Hohn writes in American Thinker How Much Taxation Would Fund Current Spending?, 12/12/12 Excerpts: Using 2009 data, the IRS says that 8,274 tax returns were filed with incomes over $10 million.  The total amount of income on those returns was $240.1 billion.…

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Making Tax Deductions Compete

The editors of the Wall Street Journal wrote Romney’s Tax Deduction Cap- An idea to finance reform and avoid political trench warfare. 10/19/12 Excerpts: The historic challenge for tax reformers is defeating the most powerful lobbies in Washington that exist to…

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The Dangers of Progressive Taxes

Robert Frank writes at CNBC The Falling Fortunes of the One Percent, 7/20/12 Excerpt: Between 2007 and 2009, after-tax earnings by Americans in the top one percent for income fell 37 percent. On a pre-tax basis they fell 36 percent…

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Beyond a Tipping Point

Politicos like to focus on a single factor and discuss the effectiveness and the justice.  But an economy is the sum total of all the policies.  It is popular from the left to decry the Bush tax cuts as if…

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A Growing Disparity in Income: So What?

John graduated high school.  Being of good character but not being a great student ,  he got a job in contracting starting at $30,000 a year.  He was dependable and was promoted to supervisor. Over thirty years his income grew…

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There are Two Sides to the ‘Social Contract’

Elizabeth Warren is running against Scott Brown in Massachusetts.  She has elicited praises from liberals for her comment that “no body got rich on their own.”  She added “part of the underlying social contract is you take a hunk of…

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