One for Box: Dean says get rid of the corporate income tax.
Here.
My take is closer to Jared's - the politics (especially now) is such that this turning into anything other than a giveaway to the rich is a sucker's bet. Sure, a simpler tax system that isn't filled with money-spewing holes that only large corporations and the rich can use would be a good thing. But I'm old enough to remember the "tax simplification" we went through in the Reagan years. The tax code isn't static - Congress will always tinker with it. "Fixing" the corporate income tax won't end the distortions over the long term (accountants and tax lawyers need to earn a living too). Thinking that a loss in tax revenue would be Ok because things would even out eventually is being far too optimistic when nihilists control the House (and are in danger of grabbing more power in the Senate).
So, Dean may be right on the economics and the costs of the corporate income tax. But economics in the US is dominated by those in power who won't let supply-and-demand and sensible policies work. Giving them what they want at this time is not sensible because it won't help the economy as a whole and the vast majority of people who are struggling to exist in it.
FWIW.
Cheers,
Scott.
I see that my friend Jared Bernstein has some more thoughtful (if mistaken) arguments on ending the corporate income tax. I recognize his concerns about giving more money to the people who have the most (hey, it’s the American Way), but I still think this is a policy that could be a big winner in the battle against the enemies of the people.
I will quickly address two issues Jared raised, the extent to which any of the savings will be passed on in wages and the ability to replace the revenue. However my main focus is the nature of the corporate tax avoidance industry. This is a pernicious drain of economic resources. It is also a major source of upward redistribution. I consider its elimination an enormous benefit – even if on net we give up some government revenue to do it.
[...]
My take is closer to Jared's - the politics (especially now) is such that this turning into anything other than a giveaway to the rich is a sucker's bet. Sure, a simpler tax system that isn't filled with money-spewing holes that only large corporations and the rich can use would be a good thing. But I'm old enough to remember the "tax simplification" we went through in the Reagan years. The tax code isn't static - Congress will always tinker with it. "Fixing" the corporate income tax won't end the distortions over the long term (accountants and tax lawyers need to earn a living too). Thinking that a loss in tax revenue would be Ok because things would even out eventually is being far too optimistic when nihilists control the House (and are in danger of grabbing more power in the Senate).
So, Dean may be right on the economics and the costs of the corporate income tax. But economics in the US is dominated by those in power who won't let supply-and-demand and sensible policies work. Giving them what they want at this time is not sensible because it won't help the economy as a whole and the vast majority of people who are struggling to exist in it.
FWIW.
Cheers,
Scott.