Political Influence on Taxes

30 November 2012

Some interesting graphs today from the NYT:

How the US Tax Burden Has Changed

There’s clearly more variability in the top two income groups, and the most in the top income group.  My intuition tells me this is probably due to the increased influence on the political process that folks at the top have.  One would think that the tax uncertainty can’t be good over the long haul.

Another argument for federally-funded elections?

I have yet to see analysis in the popular press that talks about what taxes would have to look like, given our present level of entitlements and a reasonable defense budget, to generate surpluses in expansions and deficits in recession (based an understanding of what kind of stimulus is typically needed).  Shouldn’t this be the start of the conversation?

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2 Responses to “Political Influence on Taxes”

  1. Jan Spoor Says:

    “My intuition tells me this is probably due to the increased influence on the political process that folks at the top have. One would think that the tax uncertainty can’t be good over the long haul.”

    In other words, the wealthy are the cause of the very uncertainty that some claim is causing them not to invest more robustly? *sigh*

    “I have yet to see analysis in the popular press that talks about what taxes would have to look like, given our present level of entitlements and a reasonable defense budget, to generate surpluses in expansions and deficits in recession (based an understanding of what kind of stimulus is typically needed).”

    I have yet to see an analysis in the popular press that even sketches out that such a thing is possible. It’s not clear to me that the American public has a clear understanding of basic macro-economic dynamics…

  2. David Jaeger Says:

    WIth all of the hot air expended on the difference between 35 and 40 percent as the upper marginal rate…

    The uncertainty is far more consequential than a 5 percentage point difference in marginal rates.


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