Today’s Brew 10-12-17

NJudy Shelton in today’s WSJ is very good. Lots of tax reform talk in other places as well (see links below Shelton editorial).

Woodpeckers for Sound Money

The Fed doesn’t need a ‘hawk’ or a ‘dove,’ but someone to hammer away for the dollar’s integrity.

Judy Shelton Wall Street Journal Sound Money

Today’s Brew 10-11-17

Today’s opinion pages of the Wall Street Journal are worth the price of admission. See Larry Lindsey talk tax reform and see John Tamny talk about debt and the economic future in Puerto Rico.

Tax Reform Will Give Workers a Raise

Expect 3.2% growth, mostly taking the form of higher real wages. It happened in the 1960s.

WSJ, Lindsey 10-11-17

Forgiving Debt Would Hurt Puerto Rico

Wiping out creditors would simply enable more dysfunction.

WSJ, Tamny 10-11-17

Today’s Brew 10-9-17

Former US Senator Phil Gramm writes about tax reform in today’s Wall Street Journal:

It does not necessarily follow that higher tax rates increase revenue. By raising taxes on top income earners, the Obama administration planned to raise $620 billion over 10 years. Redistributionists should be a little sobered by the fact that in the 10 years following the Obama tax increases the government is now on track to lose $3.2 trillion in revenue due to a decline in economic growth.

Despite Sweden’s and France’s willingness to impose higher marginal rates on the rich, it would appear that there are limits in the real world to how much tax blood can be extracted from wealthy turnips. The experience of OECD countries strongly suggests that in high-spending countries with high marginal tax rates and low economic growth, an increasing share of the tax burden is actually shifted from high-income individuals to the middle class.

It is equally clear that by stimulating growth, the Reagan tax cuts produced more revenue and increased the share of taxes paid by the rich. The share of income taxes paid by the top 10% of earners, which had been falling prior to the Reagan tax cuts, increased 20% during Reagan’s presidency. The U.S. government collected 19% more real revenues the day Reagan left office than the day he came into office, even though inflation had been broken, bracket creep repealed, and tax rates reduced dramatically.