{"id":171923,"date":"2010-01-12T14:18:24","date_gmt":"2010-01-12T19:18:24","guid":{"rendered":"tag:business.theatlantic.com,2010:\/\/3.33360"},"modified":"2010-01-12T14:29:15","modified_gmt":"2010-01-12T19:29:15","slug":"supply-siderism-just-wont-die","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/171923","title":{"rendered":"Supply Siderism Just Won’t Die"},"content":{"rendered":"

I wish the Wall Street Journal wouldn’t publish things like a column arguing that the late 1990s surpluses stemmed from the capital gains tax cuts.  It’s just not true, for reasons that Bruce Bartlett ably outlines<\/a>:  the increased revenues from the capital gains tax just aren’t great enough to account for the majority of the boost.  You might posit some sort of supply-side effect, but it would have to be implausibly large to generate the lion’s share of the surplus, plus some of the increase in capital gains revenue–perhaps all of it–was due not to cutting the tax rate, but to secular changes in the the equity markets.<\/p>\n

I think that in a country with a low savings rate and a stiff corporate
\nincome tax, a low capital gains rate is a good idea.  But this is a
\nposition that can easily be supported with facts; it does not need a
\nlot of rubbish lies about raising tax revenues by lowering the tax
\nrate.  There are at best very few tax rates in the United States high
\nenough to generate the kind of deadweight loss (and widespread evasion)
\nthat would allow us to generate higher revenues with lower rates; and
\nnone of those arguable cases are significant sources of federal
\nrevenue.  If Republicans want to be taken seriously when they complain
\nabout the ridiculous things Democrats say in support of their policies,
\nthey need to stop generating ridiculously lies of their own about the
\nbenefits of tax cuts . . . which may be legion, but do not include
\ngreater tax revenue for the government in any measurable time frame.


\n

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I wish the Wall Street Journal wouldn’t publish things like a column arguing that the late 1990s surpluses stemmed from the capital gains tax cuts.  It’s just not true, for reasons that Bruce Bartlett ably outlines:  the increased revenues from the capital gains tax just aren’t great enough to account for the majority of the […]<\/p>\n","protected":false},"author":80,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-171923","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/171923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/80"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=171923"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/171923\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=171923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=171923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=171923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}