by Linda Beale Swiss and US Apparently Reach Deal on Bank Disclosures related to Tax Evasion Bloomberg reports (in a minimal news story at this point based on an anonymous tip prior to the settlement being officially released) that the United States and Switzerland have reached an agreement that settles the dispute about Americans’ use […]

by Linda Beale Same-Sex Married Couples Will be Recognized for Federal Tax Purposes Even When Moving to Nonrecognition State The Treasury issued a Revenue Ruling today that sets out the rules that will guide the government in handling interpretation of the tax code regarding “marriage” and “husband” or “wife” or “spouse” in respect of same-sex […]

In honor of LABOR DAY… Yesterday, I posted a graph showing the percentage of capital income that is used for consumption. It is a new graph being developed. Since yesterday, I have gone back and changed just one number that determines the consumption rate of capital income. I replaced the number for “net government saving”, […]

Last time we examined a common conservative “solution” to the country’s health care problems, allowing insurance companies to sell policies across state lines. What we found, though, is that this would lead to a race to the bottom in state regulation of insurance products, and that there is no reason to think that further marketization […]

Theoretically, capital income, especially in the form of retained earnings by corporations and some capital gains would be used for saving and investment in the means of production, while labor income is used for consumption of finished goods and services from production. However, a portion of capital income is used for consumption, when the incentives […]

Most of our unemployment problem stems from overregulation, over-taxation and the Obama economy. — Rep. Bill Johnson (R-OH), Monday Which is why we should deregulate the financial-services industry and reduce income taxes to resemble the good ole days of the George W. Bush administration. Let’s restore the economy to its glory days: say, 2008-09.  And […]

Scott Sumner nods with approbation toward this Ychuan Wang post at Noahpinion. For which hat tip I must thank him because Wang so clearly explicates what he calls the “canonical” understanding, and illustrates so perfectly the wackiness and incoherence of of the Walrasian view: Prices don’t always adjust instantly, so we can have excess supplies […]

Unlearning Econ: The story goes like this: an Israeli day care centre found that parents were picking up their children too late, so they introduced a small charge of $3 to try and disincentivise lateness. However, instead of discouraging this behaviour, the payment served to legitimise it and buy the parents piece of mind. The […]

Has the Shale Bubble Already Burst? (Igor Alexeev, Naked Capitalism cross posted from Oil Price) “The average depletion rate of wells in the Bakken Formation (the largest tight oil play in the US) is reported to be 69 percent in the first year and 94 percent over the first five years (37 percent and 50 […]