November 11
The Poverty Trap
Government tax and transfer policies provide very little incentive to earn more income for people with income in the range $15,000 and $20,000.
Textbook References:
Pages 7-8 “Principle 4: People Respond to Incentives”Pages 449-451 “Antipoverty Programs and Work Incentives”
October 25
A Question for Class Discussion
How would a utilitarian social planner allocate a limited quantity of a flu vaccine?
Textbook References:
Pages 4-5 “Principle 1: People Face Trade-offs”Pages 442-443 “Utilitarianism”
October 13
The Incidence of the Cadillac Tax
Kevin Hasset argues that the Baucus health care reform bill would raise taxes on the working and middle classes. The tax is on insurance companies, but will likely be passed on to their customers.
Textbook References:
Pages 123-130 “Taxes”
Pages 442-445 “The Political Philosophy of Redistributing Income”
October 10
Marginal Tax Rates from Health Reform
The CBO estimates that the Baucus healthcare reform bill will add about 22 percentage points to the marginal tax rate of many working-class people.
Textbook References:
Page 7-8 “People Respond to Incentives”
Pages 127-128 “Can Congress Distribute the Burden of a Payroll Tax?”
Pages 166-167 “The Deadweight Loss Debate”
Pages 246-248 “The Fiscal Challenge Ahead”
Pages 449-451 “Antipoverty Programs and Work Incentives”
October 6
David Brooks at his Best
The current debate about health care reform reflects two very different views about the proper role of government in our economy.
Textbook References:
Pages 8-10 “Principle 6: Markets Are Usually a Good Way to Organize Economic Activity”
Pages 10-12 “Principle 7: Governments Can Sometimes Improve Market Outcomes”
Pages 442-445 “The Political Philosophy of Redistributing Income”
October 7
A 70-Percent Marginal Tax Rate
James Capretta argues that the Baucus healthcare bill will impose a marginal tax rate of 70 percent on workers just above the poverty line.
Textbook References:
Page 7-8 “People Respond to Incentives”
Pages 127-128 “Can Congress Distribute the Burden of a Payroll Tax?”
Pages 246-248 “The Fiscal Challenge Ahead”
Pages 449-451 “Antipoverty Programs and Work Incentives”
Mar. 8
Soaking the Rich?
A Washington Post article presents the views of a variety of people on the redistributive effects of Obama’s plan.
Textbook References:
Pages 4-5 “Principle 1: People Face Trade-Offs”
Pages 8-10 “Principle 6: Markets are Usually a Good Way to Organize Economic Activity”
Pages 10-12 “Principle 7: Government Can Sometimes Improve Market Outcomes”
Chapter 8 “Application: The Costs of Taxation”
Chapter 12: “The Design of the Tax System”