Income Taxes & Tax Cuts
Will an income tax cut promote economic growth, or will it just allow the rich to get richer at the expense of the poor? At what point are income tax rates too high?
A short primer on the economics of sales taxes. What are the properties of sales taxes and how do sales taxes impact the economy.
A look at how social programs with clawback rates can create exceptionally high marginal tax rates.
We examine the idea that high taxes on small business are bad because they take away the resources a business needs to expand - a classic income effect. In this article we have a discussion of corporate tax rates, income effects, substitution effects and economic growth.
A look at the topic of economic incidence in taxation
A discussion of the concept that a cut in income tax rates will lead to higher government revenue
An examination of the "starve the beast" phenomenon of taxation and government spending, in relation to gasoline taxes.
What is the Optimal Carbon Tax Rate?
A discussion of the use of Pigouvian taxes to generate revenue and reduce negative externalities such as pollution.
A reader asks: "I'm a Canadian who has been following the Canadian elections. I heard one of the parties claim that a reduction in sales taxes help the wealthy not the middle class or poor. I thought sales taxes were regressive and were mainly paid by low income people. Can you help me out?"
On June 3, 2004, Canadian Liberal Party leader Paul Martin announced that if his party was put in power, they would commit $5-billion dollars over 5 years to a national child-care. Details are always difficult to come by in an election, but observers believe that Mr. Martin is interested in creating a national child care program modelled on the Quebec provincial day care system.
Will The Liberal “National Early and Child Care Program” Benefit Low Income Parents?
A look at Canadian Conservative leadership candidate Tomy Clement's policy proposal that would make an individual's income tax rate depend on lifetime earnings.
One of the most commonly discussed issues in economics is how tax rates relate to economic growth. Advocates of tax cuts claim that a reduction in the tax rate will lead to increased economic growth and prosperity. Others claim that if we reduce taxes, almost all of the benefits will go to the rich, as those are the ones who pay the most taxes.
Tax Harmonization versus Tax Competition is an essay by Tom Stults which examines taxation issues in the EU.
I don't think I've mentioned it before, but the The Library of Economics and Liberty is probably my favorite economics site on the internet after, well, mine. Their most recent article, "Taking The Voodoo Out of Tax Cuts" should be required reading for every journalist and politician who discusses the economy.