Tax Fairness

The President says he wants the wealthy to pay their fair share. What would that be? He never says. How would one decide whether a given level of taxation is fair? He never says. Neither do his supporters, who are remarkably calalier about the theoretical foundations of their policy positions. Let’s start by asking, Who pays how much now? And let’s consider not just federal … Continue reading Tax Fairness

The Effects of Tax Cuts

Bush’s tax cuts have rewarded the rich, right? The Congressional Budget Office has released information on effective tax rates for various income groups in 2005 compared to the average over the period 1979-2005. Greg Mankiw highlights the key numbers. The first number is the effective tax rate for that group in 2005; the second, in parentheses, is the average effective tax rate for that group … Continue reading The Effects of Tax Cuts