Tuesday, October 24, 2017

Corporate Tax Rate Reading List


  1. White House CEA Report: "Corporate Tax Reform and Wages – Theory and Evidence
  2. Larry Summers: "Hassett’s flawed analysis of Trump tax plan"
  3. Greg Mankiw provides a simplified modelCasey Mulligan and John Cochrane provide additional algebra.
  4. Paul Krugman opts for a more graphical exploration, but the substance of the math is much the same.  Elsewhere, Krugman takes a more polemic approach.
  5. Larry Summers responds.  Might as well check out Vox (no, not that Vox) and Angry Bear, too.
  6. For longer primary source reading, try Summers (1981) and Gravelle (2011), both referenced throughout the above.
The key dispute here is (a) left-leaning economists believe tax reform is just tax cuts for the wealthy and (b) right-leaning economists think tax reform will boost wages.  If you read that and said, "But those are not really directly opposing views; how can you call that a dispute?," welcome to the blogosphere!  It's good to have it back.

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