Wednesday , October 17 2018
Home / Brad Delong, Berkeley / Should-Read: Jeffrey Frankel: Reagan’s Tax Reforms Revisited

Should-Read: Jeffrey Frankel: Reagan’s Tax Reforms Revisited

Summary:
Should-Read: Note that a good many economists who have, or at least had, substantial academic reputations are on board claiming that the revenue costs of last month’s tax “reform” bill are likely to be trivial—much smaller than the “static” calculation: Barro, Boskin, Holtz-Eakin, Lindsey, Calomiris, Hubbard, and others. In being willing to make such claims, they throw away their ability to influence policy: since they will endorse whatever the sausage-making process produces, others elbow them out of the way and feed the sausage machine. So, then, they should be asking themselves: What’s the point of my being here?: Jeffrey Frankel: Reagan’s Tax Reforms Revisited: “today’s Republicans do not admit that their plan isn’t revenue-neutral… …Like their counterparts in 1981, not to

Topics:
Bradford DeLong considers the following as important:

This could be interesting, too:

Delaney Crampton writes Weekend reading: “barriers to economic equality” edition

Equitable Growth writes Examining the links between rising wage inequality and the decline of unions

Bradford DeLong writes Brad DeLong: Worthy reads on equitable growth, May 25-31, 2018

Bridget Ansel writes A look at the motherhood wage gap on Mother’s Equal Pay Day

Should-Read: Note that a good many economists who have, or at least had, substantial academic reputations are on board claiming that the revenue costs of last month’s tax “reform” bill are likely to be trivial—much smaller than the “static” calculation: Barro, Boskin, Holtz-Eakin, Lindsey, Calomiris, Hubbard, and others. In being willing to make such claims, they throw away their ability to influence policy: since they will endorse whatever the sausage-making process produces, others elbow them out of the way and feed the sausage machine. So, then, they should be asking themselves: What’s the point of my being here?: Jeffrey Frankel: Reagan’s Tax Reforms Revisited: “today’s Republicans do not admit that their plan isn’t revenue-neutral…

…Like their counterparts in 1981, not to mention during the Bush era, they claim that the cuts will stimulate the economy so much that overall tax receipts will stay the same or even rise…. Reagan and Bush… implemented their cuts… and, as economists had warned, budget deficits increased sharply. The tax cuts that the Trump Republicans are attempting to pass today would be even more damaging. There is good reason to fear much more serious long-term consequences of the rise in the budget deficit, owing to two key issues of timing…. With a 4.1% unemployment rate, the US economy does not need more stimulus…. Moreover, the baby boom generation is now retiring…

Bradford DeLong
J. Bradford DeLong is Professor of Economics at the University of California at Berkeley and a research associate at the National Bureau of Economic Research. He was Deputy Assistant US Treasury Secretary during the Clinton Administration, where he was heavily involved in budget and trade negotiations. His role in designing the bailout of Mexico during the 1994 peso crisis placed him at the forefront of Latin America’s transformation into a region of open economies, and cemented his stature as a leading voice in economic-policy debates.

Leave a Reply

Your email address will not be published. Required fields are marked *