Showing archive for: “Tax Law & Policy”
‘The Logic of Political Survival,’ by Bruce Bueno de Mesquita, Alastair Smith, Randolph M. Siverson & James D. Morrow
Since the COVID-19 pandemic and the political upheavals that followed, concerns have grown that many Western democracies face authoritarian pressure and are becoming less democratic. This shift has renewed interest in one of political science’s most influential frameworks for understanding democratic and nondemocratic rule: Selectorate Theory, developed by Bruce Bueno de Mesquita, Alastair Smith, Randolph ... ‘The Logic of Political Survival,’ by Bruce Bueno de Mesquita, Alastair Smith, Randolph M. Siverson & James D. Morrow
Guardrails, Not Roadblocks: Improving the AI Framework
Washington has a choice: let AI policy fragment into 50 competing regimes, or set a clear federal baseline that keeps innovation moving. The Trump administration’s new artificial intelligence (AI) legislative framework stakes out the latter path—but leaves important gaps. The framework sketches broad principles to guide federal policymaking on a technology at risk of a ... Guardrails, Not Roadblocks: Improving the AI Framework
‘The Integration of Tax and Spending Programs,’ by David Weisbach & Jacob Nussim
David Weisbach and Jacob Nussim’s 2004 paper “The Integration of Tax and Spending Programs” marked an important law & economics contribution to the tax-policy literature. The paper argues that, given a particular policy, the part of the government best suited to implement that policy should be tasked with doing so. Government Program Implementation Choices Weisbach ... ‘The Integration of Tax and Spending Programs,’ by David Weisbach & Jacob Nussim
Why No One Likes Land Taxes
Economists and [insert basically every other group of people] often don’t agree. Take, for instance, the recent discussion of price controls. The headline of this opinion piece on the subject in The New York Times literally begins with “Economists Hate This Idea.” Yet voters aren’t so skeptical. (I’m not ready to say the idea has ... Why No One Likes Land Taxes
Trump Tariffs Before the Supreme Court — Who Wins?
The U.S. Supreme Court heard oral arguments last week on a case that will decide whether President Donald Trump has broad legal authority to impose tariffs as a key part of his foreign economic policy. Based on the justices’ questions, it appears more likely than not that the Court will hold the president lacks this ... Trump Tariffs Before the Supreme Court — Who Wins?
No, You Can’t Just Compare Tariff Rates and Income-Tax Rates
A little while back, John Lott had a very confused piece in the New York Post. In it, he made the following claim: Distortions increase as tax rates do. Before Trump’s policies, the average US tariff rate stood at just 2.5% — tiny compared to the 43.4% average top personal income tax rate (including federal and state ... No, You Can’t Just Compare Tariff Rates and Income-Tax Rates
American Industrial Policy Should Start with No More Self-Inflicted Tax Wounds
U.S. industrial-policy efforts frequently undermine themselves through counterproductive tax regulations, creating a paradox that hinders genuine investment and economic growth. Policymakers have committed substantial resources and political capital toward reshoring domestic manufacturing, upgrading national infrastructure, and enhancing American economic competitiveness. Indeed, these goals have been central to the Trump administration’s stated economic priorities. Yet despite ... American Industrial Policy Should Start with No More Self-Inflicted Tax Wounds
Trump Tariffs in a Broader Policy Context
The possible ramifications of President Donald Trump’s tariffs are drawing headlines. Tariffs are a linchpin in the expansive Trump “America First Trade Policy” that aims to reshape U.S. trade relations. Even more broadly, other Trump administration initiatives—including tax, energy, and regulatory policies—also will have a major impact on American economic performance. The economic case for implementing those ... Trump Tariffs in a Broader Policy Context
Stop Saying a Value-Added Tax Is an Export Subsidy
In a recent Financial Times opinion piece, Jason Cummins (who holds a Ph.D. in economics from Columbia University) argued that the Trump administration should impose a 25% tariff on European goods to offset an “unfair advantage” from Europe’s value-added tax (VAT) system. According to Cummins, European exporters like BMW Group enjoy an “implicit subsidy” when they ... Stop Saying a Value-Added Tax Is an Export Subsidy
The Effect of VAT Withholding Requirements in Latin America
Innovations in payment systems are rapidly transforming the world economy. While Bitcoin, Ethereum, and other decentralized blockchain-based systems tend to garner much of the press (good and bad), centralized peer-to-peer (P2P) payment systems are far more common. (Note that I use the term P2P here in its original sense to mean all peer-to-peer transactions, which ... The Effect of VAT Withholding Requirements in Latin America
Applying harm reduction to smoking
Abstinence approaches work exceedingly well on an individual level but continue to fail when applied to populations. We can see this in several areas: teen pregnancy; continued drug use regardless of severe criminal penalties; and high smoking rates in vulnerable populations, despite targeted efforts to prevent youth and adult uptake. The good news is that ... Applying harm reduction to smoking
Vapor products, harm reduction, and taxation: More questions than answers for a young and dynamic product market
ICLE has released a white paper entitled Vapor products, harm reduction, and taxation: Principles, evidence and a research agenda, authored by ICLE Chief Economist, Eric Fruits. More than 20 countries have introduced taxation on e-cigarettes and other vapor products. In the United States, several states and local jurisdictions have enacted e-cigarette taxes. The concept of ... Vapor products, harm reduction, and taxation: More questions than answers for a young and dynamic product market
