A couple of items that remind me of the discussions last year about tax cuts. The major bone of contention in last December's tax cut deal was over whether the Bush era tax rate cut for the top income bracket should be extended. You may remember that it the Bush tax cuts were originally scheduled … Continue reading Pity the Rich. It’s So Hard to Get By.
Our culture in the U.S. tends to over-estimate just how rich most people are. Hollywood TV shows and movie routinely show "middle class" families in houses that are anything but middle class. Our political rhetoric tends to do the same - witness last fall's arguments by Republicans that incomes of over $250,000 are actually just … Continue reading Reality Check: Income
Inequality matters, and contrary to much "conventional wisdom", income redistribution can and does work in man countries. In fact, the evidence is that it results in faster growing and more productive economies. (Hat tip to Mark Thoma for this summary. I strongly urge readers to go to Born Poor?, by: Corey Pein: and read the … Continue reading Inequality Matters and Redistribution of Income Helps the Economy