Economics @ ITT

Bye, Bye American Dream! Economic Inequality Is Permanent

Posted in economics, Income Redistribution, Policy Issues, Taxation by ittecon on March 23, 2013

A new study by a team of economists in academia and the government has concluded that economic inequality is a permanent—not temporary—feature in the United States, based on an analysis of 350,000 federal income tax returns between 1987 and 2009.

via Bye, Bye American Dream! U.S. Economic Inequality Is Permanent, Study Finds | Alternet.

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March Madness

Posted in economics, Taxation by ittecon on March 22, 2013
March Madness

Effective tax rates in the US are not among the highest of industrialised countries.

The Myth of Americans Living Beyond Their Means

Posted in economics, Policy Issues, Taxation by ittecon on March 8, 2013

A video of and by Robert Reich.

‘Privacy tax’ creator makes his case, warns ‘software is eating the world’

Posted in economics, Taxation by ittecon on February 15, 2013

Colin, a tax inspector for the Ministry of the Economy and Finance in France, believes that corporations have turned the Digital Age into a massive tax haven which dwarfs anything high-priced accountants have ever pulled off in places like the Cayman Islands. His beef: Corporations don’t pay a penny in taxes on all that free labor.  In other words, not only are you are the product, but you’re also paying for all the roads, fiber-optic lines and airports that digitally dependent corporations need to get rich.

via ‘Privacy tax’ creator makes his case, warns ‘software is eating the world’ – Red Tape.

Collapse of the American Dream

Posted in economics, Policy Issues, Taxation by ittecon on January 19, 2013

Not entirely accurate depiction of the money and banking system, but still interesting.

3 Approaches to Curbing Gun Violence Using Economics

Posted in economics, Policy Issues, Regulation, Taxation by ittecon on December 19, 2012

Undoubtedly, there are more economic incentives to employ, and I don’t want to get mired in the politics of this gun ownership issue, but these are decent ideas.

What if anything can the government realistically do to decrease gun violence in America? We’ll surely hear a number of proposals this week, but here are three that attack the problem as an economist would: through incentives.

via 3 Approaches to Curbing Gun Violence — Using Economics | TIME.com.

Another approach is to make the manufacturers and vendors civilly liable for any damage caused by the product—sort of like making a bartender liable for serving an inebriated patron alcohol after s/he gets into an accident. This takes the argument out of the constitutional realm into the domain of economics. People in the US might have the right to bear arms, but the liability would increase the cost to these parties, and so  based on classical economic theory, supply would decline and prices would increase.

11 Facts About the Simpson-Bowles Plan

Posted in economics, Taxation by ittecon on December 5, 2012

The Simpson-Bowles plan — which Erskine Bowles does actually support — occupies strange territory in Washington: Almost every politician professes to admire it, almost none of them are willing to vote for it, and almost none of its supporters know what’s in it. So here, with an assist from the Center on Budget and Policy Priorities, are a few facts to keep in mind about the Simpson-Bowles plan. And while you’re reading this list, remember: Simpson-Bowles is a centrist proposal.

via 11 shocking, true facts about Simpson-Bowles.

Tax the Traders! It Would Solve Economic Crisis

Posted in economics, Policy Issues, Regulation, Taxation by ittecon on December 4, 2012

A tax of less than half a percent on every $100 of stock sales or sales of other financial instruments including bonds, derivatives, and options. The tax could raise anywhere from $170 billion to $350 billion per year depending how it was applied.

via Eliot Spitzer: Tax the Traders! It Would Solve Economic Crisis and Stop Reckless Activity | Alternet.

Raising Taxes On The Rich?

Posted in economics, employment, microeconomics, Policy Issues, progressive taxation, Taxation by ittecon on November 30, 2012

Economics is not some monolithic discipline, and it is consitently misrepresented by those with Corporatist and otherwise Elitist agendas. Take the following statement:

Economic theory says that when the government takes a bigger bite of your income as you move up the ladder into higher tax rates, you are less likely to work more, invest and build businesses. So economic growth and job creation suffer.

Some theories—and admitedly the mainstream theory—do make this claim, but it falls apart quickly when we understand that persons at those wage levels are not hourly workers; they are salaried. Likely, you will work just as hard, and your gross wages will remain somewhat the same; your net income—what you can’t shelter to avoid or evade taxes—will undoubtedly fall somewhat at the affected margin. Lots of smoke; no fire.

Reference: Raising Taxes On The Rich: Canny Or Counterproductive? : Its All Politics : NPR.

How the US Can Avoid Falling Off the Fiscal Cliff

Posted in economics by ittecon on November 14, 2012

US policy makers must begin by realising three points. First, raising revenue is about raising average tax rates, not marginal tax rates, as Barack Obama’s campaign suggested. Higher marginal tax rates distort behaviour and reduce activity. There are ways to raise revenue without increasing marginal rates. Tax deductions should be scaled back, especially in the areas of mortgage interest, charitable giving and employer-provided health insurance.

via How the US can avoid falling off the fiscal cliff – FT.com.