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Tax Politics

The Politics of Taxes

Reciprocal Tariff Ignorance

President Trump continues to pursue his misguided tariff crusade believing that he is somehow protecting American industries and employment. His latest move, reciprocal tariffs (which he intends to begin April 2), is even worse. Trump has stated that he plans to impose tariffs based on “what they charge us, we charge them,” which is an economically stupid idea. Advocates of this policy like to...
Sage Observations from Cato

James Dorn at the Cato Institute makes a great case for how and why our government is going in the wrong economic direction. Some of his points are as follows: "Economic growth depends on institutions that reward saving and investment, that expand individuals'...

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Cafe Hayek on Government Spending and Job Creation

As I've mentioned before on this blog, my friend Don Boudreaux has a great website with a fellow economist, Russ Roberts:  www.cafehayek.com. Roberts was recently thinking aloud about the correlation between government spending and job creation. He does a nice job...

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Why Stimulus Doesn't Stimulate

Robert Higgs published a thoughtful essay a few days ago in the Sacramento Bee. Higgs reminds us of a basic economic lesson that Obama has yet to learn:  consumptive spending is not nearly as stimulative as investment spending. Higgs rightly cites a sharp decline in...

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NY Income Drops

Reuters reports a drop in the personal income of NY residents for the first time in 70 years: "The recession put a 3.1 percent dent in the personal incomes of New York state residents, who endured their first full-year decline in more than 70 years, according to a...

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Smart Move by Dems

I don't say it very often, but I have it hand it to them Dems. The House vote taken today on whether or not to adjourn the House before deciding on the fate of the Bush tax cuts was a smart one. 39 Dems voted with the Republicans, making it a narrow 210-209 vote but...

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Extending Tax Cuts on Investments?

Now this looks promising as a step in the right direction. The AP is reporting that 47 House Democrats are breaking rank and urging Congress to extend tax cuts on investments. This means keeping the current rates on capital gains and dividends.  A letter purportedly...

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