Showing archive for: “Tax”
‘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
Launching a Conversation: Insights on Industrial Policy
We are excited to announce the launch of “Perspectives on Industrial Policy,” a new Truth on the Market symposium intended to gather insights from leading experts in economics, law, and public policy. This series aims to explore the promises and pitfalls of industrial policy at a time when it occupies a central role in political ... Launching a Conversation: Insights on Industrial Policy
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
There’s Nothing ‘Fair’ About EU Telecoms’ Proposed ‘Fair Share’ Plan
The European Commission’s recently concluded consultation on “the future of the electronic communications sector and its infrastructure” was a curious phenomenon in which the commission revived the seemingly dead-and-buried idea of a legally mandated “sender pays” network-traffic scheme, despite the fact that it remains as unpopular and discredited as it was when last discussed roughly ... There’s Nothing ‘Fair’ About EU Telecoms’ Proposed ‘Fair Share’ Plan
How Chairman Pai Restored the FCC’s Independence
Chairman Ajit Pai will be remembered as one of the most consequential Federal Communications Commission chairmen in history. His policy accomplishments are numerous, including the repeal of Title II regulation of the internet, rural broadband development, increased spectrum for 5G, decreasing waste in universal service funding, and better controlling robocalls. Less will be said about ... How Chairman Pai Restored the FCC’s Independence
Islands of Chaos: The Economic Calculation Problem Inherent in Municipal Broadband
Municipal broadband has been heavily promoted by its advocates as a potential source of competition against Internet service providers (“ISPs”) with market power. Jonathan Sallet argued in Broadband for America’s Future: A Vision for the 2020s, for instance, that municipal broadband has a huge role to play in boosting broadband competition, with attendant lower prices, ... Islands of Chaos: The Economic Calculation Problem Inherent in Municipal Broadband
