Tag Archive: Public economics

Starving the Budget

With the fiscal cliff looming, Republicans are indicating some flexibility on taxes, at least for the higher income brackets. Naturally, this is generating some opposition:

To start with, Kristol misunderstands the opponents of the tax increases on the rich, whose main goal is not to ensure that the rich get to keep more of their money. Their main goal is to prevent the federal government from obtaining a new source of revenue. Why might that

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Sunday Six Pack

NPR recently had group of economists discuss policies that they think are great for the country but that politicians consider radioactive. The group of economists was actually quite diverse, ranging from George Mason libertarian (and frequently linked Cafe Hayek blogger) Russ Roberts to Cornell liberal Robert Frank. What six policies could that group possibly agree on? And why wouldn’t politicians embrace policies that enjoy such a broad consensus?

One: Eliminate the mortgage tax deduction, which

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Frankensubsidy

Farm subsidies would seem a fairly easy target for budget cuts. They were a bad idea even before farm income boomed in recent years. They encourage bad ideas like monocropping and overuse of fertilizer. A lot of it goes to absentee farmers and big farm corporations.

So naturally, the GOP Congress is going to respond to this flaming budgetary bullseye by creating the illusion that they are cutting them:

It seems a rare act of

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