Relevant and even prescient commentary on news, politics and the economy.

John Taylor in Favor of Higher Marginal Income Tax Rates? If Not, Why Not?

by Mike Kimel John Taylor in Favor of Higher Marginal Income Tax Rates? If Not, Why Not? A couple of weeks ago, John Taylor posted a graph showing that since 1990, there has been a negative correlation between the Investment to GDP ratio and unemployment. There’s been some back and forth between Taylor and some […]

Tax Rates v. Real GDP Growth Rates, a Scatter Plot

by Mike Kimel Tax Rates v. Real GDP Growth Rates, a Scatter PlotCross posted at the Presimetrics blog. This post was submitted by Kaleberg. In this post, I will look at the relationship between top marginal income tax rates and real GDP growth using a scatter plot. I am inordinately fond of scatter plots. The […]

A proxy for nominal aggregate demand and payroll growth: Treasury receipts are recovering…

I present an update on aggregate demand using the highest frequency of economic data available, US Treasury tax receipts. Tax receipts serve as a proxy for nominal aggregate demand via a nominal indicator of private payroll growth. US daily Treasury tax receipts are improving. (This chart has been modified since its original posting to enable […]

The Pseudo-Psychology of Psupply Pside Economics

by Bruce Webb In my view you can boil Supply Side down to a simple aphorism: “If you tax something, people will use less of it”. And all things being equal and depending on how you define ‘something’ this seems economically and psychologically plausible, higher prices drive down demand. Unfortunately in the real world all […]

The Rich *Are* Different

by Tom Bozzo Yesterday, run75441 sent an e-mail to the Bears touching off a bit of a discussion on the perennial question of what constitutes the “middle class” or a “middle-class income.” Run’s touchstone was the AMT, which has been turned by bad legislation (not indexing the zero bracket; interactions with the Bush-era changes to […]

Kornhauser’s Tax Literacy Project–about time

edited 072909 to correct link for giving online, by Linda Beale One of my big gripes (in case you haven’t noticed) is the ease with which ordinary Americans can be fooled about tax issues by organizations, often ones with greedy purposes of furthering their own interests in lower taxes for themselves, that publish misleading or […]

Define rich!!!!!!!!

(I’m broadening the discussion now.)by Divorced one like Bush Define rich. Define rich! Define rich? That’s the come back every time the issue of raising the income tax on the rich come up. What is unsaid is: Go ahead. Define rich. I dare ya! (Triple dog dare at that.) Fine. I’ll accept the challenge. But, […]