Articles Posted in Tax and Economics

George Washington law professor and economist Neil H. Buchanan discusses politicians' current fixation on the budget deficit and argues that Democrats who take an anti-deficit stance to attack the Republican tax bill are playing right into Republicans’ hands. Buchanan explains why blanket declarations about decreasing the budget deficit as a tax reform fix-all are problematic and cautions Democrats (along with journalists who report on tax reform issues) to be mindful of the arguments they choose when countering Republicans.

University of Washington law professor Anita Ramasastry comments on the recent release of records known as the Paradise Papers, which reveal the identities of thousands of individuals and corporations using offshore jurisdictions as a tax avoidance strategy. Ramasastry argues that while such actions may in many cases be legal, they are also unethical. She points out that if we focus on the harm of tax avoidance to society, rather than how it is legally defined, then we can see that it contributes to growing inequality and increases tax burdens on resident taxpayers who cannot change their citizenship or move their money.

George Washington law professor and economist Neil H. Buchanan argues that economic inequality is the political and economic issue of our time, and now is the perfect opportunity for Democrats to push toward a solution. Buchanan decries the claim that the correct path is to triangulate between the policies of the left and the right and explains why now, more than ever, progressive policies are the best response.

Marci A. Hamilton, a professor and resident senior fellow in the Fox Leadership Program at the University of Pennsylvania, describes the enormous costs associated with child sex abuse that fall on the victims’ families, government welfare programs, and society. Hamilton points out that there is no comprehensive metric that considers all of the costs, but the ones that have been measured are staggering.

George Washington law professor and economist Neil H. Buchanan comments on the response of Louise Linton, wife of Treasury Secretary Steve Mnuchin, to criticism regarding her bragging about wearing expensive clothes in a government jet. Buchanan points out that Linton’s path to fortune is based not on her hard work but largely on circumstances beyond her control, and he argues that simply being a billionaire does not necessarily mean one has positively contributed to society to get there.

George Washington law professor and economist Neil H. Buchanan continues his discussion of tax reform, suggesting that a starting place for meaningful reform would be to tax wealth more effectively, tax unrealized gains, and eliminate the preferential tax rates for investment income. Buchanan points out that even modest changes in these areas would significantly address the problem of growing economic inequality in our country.

In this first of a series of columns on tax reform, George Washington law professor and economist Neil H. Buchanan describes a few items that should not be seriously considered in attempting to improve the status quo. Buchanan argues that the notion of a complete overhaul of the tax code, and the proposal that the tax code should be “simpler,” ignore important considerations and distract from real issues.

Neil H. Buchanan, a George Washington law professor and economist, argues that the tax code status quo (imperfect as it is) is better than the changes Republicans are proposing to make. Buchanan explains the difference between the marginal tax rate and the effective tax rate and how Republicans focus only on marginal tax rates in order to mislead the public.

George Washington law professor and economist Neil H. Buchanan once again explains why supply-side economics does not work to stimulate the economy. Buchanan points out the logical mistake of inferring causation from correlation and points to the consensus among economists across the political spectrum that supply-side economics has no basis in fact or theory.

Chapman University Fowler School of Law professor Ronald D. Rotunda comments on a few aspects of the U.S. federal income tax. Specifically, Rotunda discusses some of the proposals for tax reform and the tax revenue each reform might affect.

Chapman University Fowler School of Law professor Ronald D. Rotunda argues that lowering the marginal tax rates improves the economy. Rotunda looks at several historical examples where lowering the marginal tax rate coincided with an increase in the gross domestic product (GDP).

George Washington law professor and economist Neil H. Buchanan explains that, contrary to what conservatives argue, liberals are concerned with both supply- and demand-side economics. Buchanan describes several liberal-backed policies that have important supply-side effects.

In anticipation of President Trump and congressional Republicans trying to pass severely regressive tax cuts for the rich, George Washington law professor and economist Neil H. Buchanan preemptively critiques conservatives’ claims that supply-side economics works. Buchanan points out that the great weight of evidence demonstrates that it does not, and only blind belief could lead one to think otherwise.

George Washington law professor and economist Neil H. Buchanan explains in plain English what Mick Mulvaney meant when he attempted to justify President Trump’s budget proposal that would cut programs that help America’s most vulnerable, such as Meals on Wheels and subsidized school lunches for poor children. As Buchanan explains, Mulvaney’s explanation is based on a false notion that better-off people gain as much utility from each dollar as worse-off people receive from the same amount.

George Washington law professor and economist Neil H. Buchanan explores how President-elect Donald Trump could seize upon, or even create, a debt ceiling crisis as a way to enhance his executive powers. Buchanan explains that Trump could put himself into a “trilemma” on purpose, giving himself no choice but to pick and choose which of the government’s debts he would pay and which he would not.

George Washington law professor and economist Neil H. Buchanan explains how and why House Republicans might put President-elect Donald Trump in a debt ceiling crisis, just as they did to President Obama. Buchanan points out that Trump might rightfully choose to ignore the debt ceiling law, which Buchanan argues is unconstitutional anyway.

Illinois Law dean and professor Vikram David Amar considers whether states have the authority to mandate tax return disclosure in order to appear on the presidential election ballot—and if they do, whether exercising that authority is a good idea. Amar explains why the legal authority for enacting such laws is unclear and argues that they could potentially undermine the democratic process, whereas a national popular vote would strengthen the process.

George Washington law professor and economist Neil H. Buchanan explains why, with the information that we currently have, there is no way to determine whether Donald Trump’s tax strategies were legal or illegal. Buchanan argues that regardless of the answer to that question, there are still too many special provisions for people like Trump—particularly with respect to the real estate sector.

Chapman University, Fowler School of Law, professor Ronald D. Rotunda evaluates the claims of President Obama and presidential candidate Hillary Clinton about the country’s economic gains over the past eight years and finds that those claims lack support. Rotunda argues that the numbers indicate that the policy of federal government intervention has not worked as well as Clinton and Obama claim.

George Washington law professor and economist Neil H. Buchanan explains why young Americans and black Americans should not believe Trump’s (and Republicans’) claims that they have nothing to lose by dismantling Social Security and Medicare. Buchanan describes the so-called reduced benefits scenario that could happen in the unlikely event that the trust balance reaches zero and contrasts that with the enhanced benefits that could result from a Clinton presidency.