Heavy Lifting - thoughts and web finds by an economist
|I also contribute to Division of Labour||Load HL's Front Page|
Friday, August 10, 2007
Also from ProfessorJournal.com:
Businesses don't pay taxes. People pay taxes. And the evidence suggests the corporate tax hits wage earners hard. In this opinion piece, Glenn Hubbard, Dean, Columbia Business School, offers that the most interesting issues of the discussion about whether to increase corporate taxes are "whether corporate taxes are an effective way to raise revenue for the government. And, importantly, who really pays the tax." As Prof. Hubbard puts it, the tax incidence question is basic Econ 101, and thus entirely appropriate for principles and intermediate economics courses. "The admonition that people pay taxes -- in this case, suppliers of capital through lower returns, workers through lower wages, and/or consumers through higher prices -- remains true even when the tax is aimed at capital." The opinion piece nicely outlines how in an open economy, an increase in corporate taxes leads to a decrease in wages. The piece then offers summaries of empirical evidence of this phenomenon.
WSJ piece here (sub req'd)
Comments: Post a Comment
Le Chai - galerie du vin
Posts that contain Craig Depken per day for the last 90 days.
Heavy Lifting's Main Page
Money I Found Today
Heavy Lifting - Firehose style (56k warning)
- Microeconomics quiz of the week II
Modified maystar design
powered by blogger