"The problem with socialism is you eventually run out of other people's money" - Margaret Thatcher
"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design" - F.A. Hayek
I think Feldstein has a good proposal. I think he hurts his argument with the line "Opponents of tax increases should see that, because such revenue-raising is really cutting government spending, it does not imply the adverse incentive effects of raising marginal tax rates".
This is incorrect. Yes, removing these deductions are essentially spending cuts however, when viewing the adverse incentive effects, they are most certainly like an increase in marginal rates for individuals and families. I don't see how it couldn't be. It isn't about the verbiage.
I think Feldstein has a good proposal. I think he hurts his argument with the line "Opponents of tax increases should see that, because such revenue-raising is really cutting government spending, it does not imply the adverse incentive effects of raising marginal tax rates".
ReplyDeleteThis is incorrect. Yes, removing these deductions are essentially spending cuts however, when viewing the adverse incentive effects, they are most certainly like an increase in marginal rates for individuals and families. I don't see how it couldn't be. It isn't about the verbiage.