Six Policies Economists Love (And Politicians Hate

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One: Eliminate the mortgage tax deduction, which lets homeowners deduct the interest they pay on their mortgages. Gone. After all, big houses get bigger tax breaks, driving up prices for everyone. Why distort the housing market and subsidize people buying expensive houses?

Two: End the tax deduction companies get for providing health-care to employees. Neither employees nor employers pay taxes on workplace health insurance benefits. That encourages fancier insurance coverage, driving up usage and, therefore, health costs overall. Eliminating the deduction will drive up costs for people with workplace healthcare, but makes the health-care market fairer.

Three: Eliminate the corporate income tax. Completely. If companies reinvest the money into their businesses, that's good. Don't tax companies in an effort to tax rich people.

Four: Eliminate all income and payroll taxes. All of them. For everyone. Taxes discourage whatever you're taxing, but we like income, so why tax it? Payroll taxes discourage creating jobs. Not such a good idea. Instead, impose a consumption tax, designed to be progressive to protect lower-income households.

Five: Tax carbon emissions. Yes, that means higher gasoline prices. It's a kind of consumption tax, and can be structured to make sure it doesn't disproportionately harm lower-income Americans. More, it's taxing something that's bad, which gives people an incentive to stop polluting.

Six: Legalize marijuana. Stop spending so much trying to put pot users and dealers in jail — it costs a lot of money to catch them, prosecute them, and then put them up in jail. Criminalizing drugs also drives drug prices up, making gang leaders rich.

There you have it, six major proposals that have broad agreement, at least among economists. Though we should note that there were some pretty significant quibbles about just how to implement the income-tax and carbon-tax proposals.

http://www.npr.org/blogs/money/2012/07/19/157047211/six-policies-economists-love-and-politicians-hate

[X Factor 1,112]

These changes are too far reaching for all to happen at the same time. Some of them do make sense.

[The Nature Boy 4,224]

One: Eliminate the mortgage tax deduction, which lets homeowners deduct the interest they pay on their mortgages. Gone. After all, big houses get bigger tax breaks, driving up prices for everyone. Why distort the housing market and subsidize people buying expensive houses?

Two: End the tax deduction companies get for providing health-care to employees. Neither employees nor employers pay taxes on workplace health insurance benefits. That encourages fancier insurance coverage, driving up usage and, therefore, health costs overall. Eliminating the deduction will drive up costs for people with workplace healthcare, but makes the health-care market fairer.

Three: Eliminate the corporate income tax. Completely. If companies reinvest the money into their businesses, that's good. Don't tax companies in an effort to tax rich people.

Four: Eliminate all income and payroll taxes. All of them. For everyone. Taxes discourage whatever you're taxing, but we like income, so why tax it? Payroll taxes discourage creating jobs. Not such a good idea. Instead, impose a consumption tax, designed to be progressive to protect lower-income households.

Five: Tax carbon emissions. Yes, that means higher gasoline prices. It's a kind of consumption tax, and can be structured to make sure it doesn't disproportionately harm lower-income Americans. More, it's taxing something that's bad, which gives people an incentive to stop polluting.

Six: Legalize marijuana. Stop spending so much trying to put pot users and dealers in jail — it costs a lot of money to catch them, prosecute them, and then put them up in jail. Criminalizing drugs also drives drug prices up, making gang leaders rich.

There you have it, six major proposals that have broad agreement, at least among economists. Though we should note that there were some pretty significant quibbles about just how to implement the income-tax and carbon-tax proposals.

http://www.npr.org/b...oliticians-hate

Legalize dope, tax carbon blah blah blah.. More liberal non sense. Ok maybe legalize weed. I would not mind a good RWNJ Libertarian toke on rare occasion ))

[X Factor 1,112]

Legalize dope, tax carbon blah blah blah.. More liberal non sense. Ok maybe legalize weed. I would not mind a good RWNJ Libertarian toke on rare occasion ))

Left wing ecomomists vs right wing economist?

[The Nature Boy 4,224]

Left wing ecomomists vs right wing economist?

I wish we could all agree on flat tax and the left and right could all pledge to put a moratorium on social issues for 4 years. We could fix America. Although conservative I find myself siding with liberals usually on Social issues. I think people should do what they want as long as they don't ask me to condone it, fund it or witness it .

[Pooky 3,830]

Moral of this thread?

Economists only make sense to pot smokers

[I AM NOT THAT GUY 5,715]

You were doing fine with the first four, and then went off into left field with the last two. It sorta makes me think some economists actually started the list, and a couple hippy college interns at NPR that were supposed to edit the article, didn't finish before the 4:20 smoke break, which might explain why the final two were added -- purely for giggles.

Edited August 21, 2012 by The Patriot

[The Nature Boy 4,224]

You were doing fine with the first four, and then went off into left field with the last two. It sorta makes me think some economists actually started the list, and a couple hippy college interns at NPR that were supposed to edit the article, didn't finish before the 4:20 smoke break, which might explain why the final two were added -- purely for giggles.

ROFL that is exactly what happened .

[X Factor 1,112]

I wish we could all agree on flat tax and the left and right could all pledge to put a moratorium on social issues for 4 years. We could fix America. Although conservative I find myself siding with liberals usually on Social issues. I think people should do what they want as long as they don't ask me to condone it, fund it or witness it .

Flat tax does simplify things but then there is the accounting profession that is lobbying hard to keep the status quo.