Articles Posted in Tax and Economics

UF Levin College of Law professor and economist Neil H. Buchanan explains why President Biden’s infrastructure spending bill is inexpensive and necessary, given the long-term positive effects of such spending. Professor Buchanan puts the two-trillion-dollar price tag into context and argues that we actually need much more public investment than that.

Cornell law professor Michael C. Dorf responds to three broad-based objections by Republican opponents to the American Rescue Plan Act of 2021: (1) that the already-recovering economy doesn’t need stimulus; (2) that many of the Act’s provisions have nothing to do with COVID-19; and (3) that there will be waste, fraud, and abuse. Professor Dorf explains why these objections ring hollow and argues that while the Act is not perfect legislation and will likely face challenges in implementation, it is a much better option than anything Republicans were offering.

UF Levin College of Law professor and economist Neil H. Buchanan explains why President Trump’s inept handling of the COVID-19 pandemic should disqualify him from even running for reelection, let alone returning to office. Buchanan argues that it is shocking that we cannot predict the outcome of the 2020 election in light of Trump’s failure to address the biggest health crisis in a century and his consistent efforts to undermine the public response every step of the way.

UF Levin College of Law professor and economist Neil H. Buchanan debunks the Republican claim that Donald Trump and Republican leaders have handled (and are handling) the economy well. Buchanan points out that the only action that Trump and his party had taken on the economy before the pandemic was a two-trillion-dollar tax cut in 2017, which was weighted toward the rich and unpopular among the American public. Buchanan notes that even before the pandemic hit, workers were living in fear that their families would be destroyed by a medical catastrophe, and it is even worse now.

Cornell law professor Joseph Margulies debunks the notion that the poor are poor because they are lazy, while the rich are rich because they are industrious. Margulies distinguishes the stock market, in which 84 percent of all stocks owned by Americans are held by the wealthiest ten percent of American households, from the general economy and point out that for the poorest half of Americans—roughly 160 million people—the stock market is meaningless.

Neil H. Buchanan—UF law professor and economist—dispels some common misunderstandings about the future of Social Security but explains why President Trump’s recent comments are cause for concern. Buchanan explains why, contrary to claims by reporters and politicians, Social Security is not at the brink of insolvency, but points out that if Trump were to permanently eliminate payroll taxes, that would doom the program on which tens of millions of retirees depend.

Cornell law professor Joseph Margulies describes a few of the ways in which America has failed its people—its inability to feed, house, and provide water for its poor, while at the same time finding tools to support and enrich its wealthy. Margulies paints a bleak picture of the number of Americans who will go hungry, be evicted, or lack indoor plumbing and access to clean, affordable water. In contrast, Margulies points out that the stock market—in which 84% of all stocks owned by Americans are held by the wealthiest 10%—has fully recovered.

UF Levin College of Law professor and economist Neil H. Buchanan points out some of the ways in which congressional Republicans misunderstand economics to justify withholding unemployment payments from Americans during the COVID-19 pandemic. Buchanan argues that economic theory soundly demonstrates that given the opportunity, people will make choices that worsen the toll of the pandemic.

In this second of a two-part series of columns, UF Levin College of Law professor Neil H. Buchanan explains why Senate Majority Leader Mitch McConnell is incorrect in claiming that the reason Democratic-led states are in trouble is that they are providing excessively generous pensions to retirees who worked for state and local governments. Buchanan then examines a workaround, first described by Professor Darien Shanske of the University of California at Davis, that would allow the Federal Reserve to give assistance to states and cities without interference from Republicans in the Senate or the White House.

In this first of a series of columns about federal relief to state and local governments, UF Levin College of Law professor and economist Neil H. Buchanan provides the economic background to explain how unprecedented these times are and argues that supporting cities and states is essential to surviving this crisis.

UF Levin College of Law professor and economist Neil H. Buchanan explains why we should not be concerned about increasing the federal government’s debt, despite what some journalists are suggesting. Buchanan points out that sometimes—such as during a pandemic or other crisis—the federal government should borrow more to prevent a downward economic spiral.

NYU law professors Samuel Estreicher and Jonathan F. Harris describe how the COVID-19 pandemic is forcing the United States to confront the problem of unchecked globalization. Estreicher and Harris argue that once the pandemic subsides, U.S. policymakers should, as a matter of national security, mandate that a minimum percentage of essential supplies be manufactured domestically.

UF Levin College of Law professor and economist Neil H. Buchanan discusses the ongoing negotiations in Congress over the stimulus bill that would purportedly start to address the present economic crisis. Buchanan argues that while Democrats are right to try to stop Republicans from writing a huge unrestricted corporate handout into the bill, they will have to agree to something quickly—and the sooner the better.

Cornell law professor Joseph Margulies points out that when a nation doesn’t have the money to fix its roads but does give money away to help the rich get richer, that is a sign of a nation in collapse. Margulies describes the shift to neoliberal thinking under Nixon that has produced record levels of economic inequality and explains why the Trump administration’s proposed economic policies would benefit only the rich.

Cornell law professor Joseph Margulies comments on some of the national myths about America and explains why they are at best misleading, and at worst, outright lies. For example, Margulies debunks the claim that America is “the land of opportunity” and “the land of milk and honey.”

UF law professor and economist Neil H. Buchanan comments on a recent positive development in the economics profession—a move beyond the narrow notion of “Pareto efficiency” that economists have used for decades to support trickle-down economics. Buchanan explains the significance of this development, with the caveat that the change will likely not make much difference in actual economic policies.

University of Florida Levin College of Law professor and economist Neil H. Buchanan criticizes Democratic pundits and presidential candidates for trying to force Senator Elizabeth Warren to say explicitly whether she intends to raise taxes to pay for her healthcare-for-all plan. Buchanan points out that their insistence on this point essentially does Republicans’ work for them, rather than setting the table for an honest and clear discussion about the financial costs (by any name) of reform.

University of Florida Levin College of Law professor and economist Neil H. Buchanan comments on a recent essay by Binyamin Appelbaum and highlights what he perceives as Appelbaum’s most important arguments with respect to the economics profession. Buchanan argues that we should welcome the decline of economics because it exemplifies an academic field given too much responsibility with too little accountability.

In this second of a two-part series of columns, University of Florida Levin College of Law professor and economist Neil H. Buchanan argues that Americans do not have to—and should not—support Trump simply because he claims (erroneously) to have revitalized the economy. Buchanan argues that for a voter to cast a vote purely on account of a perceived improved economy would require her to devalue every other issue—effectively selling the country’s soul.

In this first of a two-part series of columns, University of Florida Levin College of Law professor and economist Neil H. Buchanan responds to the claim that President Trump is helping the U.S. economy. Buchanan argues that beneath the “somewhat good” aggregate numbers, most people in this country are suffering genuine damage, including not having health care insurance and being perpetually on the verge of financial ruin.