Churchill on capitalism
14 Sep 2014 Leave a comment
in applied welfare economics, constitutional political economy, market efficiency, Public Choice, public economics, technological progress Tags: capitalism, Winston Churchill
The most forgotten diagrams in the political economy of taxation-updated
30 Jul 2014 Leave a comment
in applied price theory, public economics, taxation Tags: incidence of taxes, the burden of taxes
The ability to pass the burden of the tax depends on price elasticity of demand and price elasticity of supply.
The state has no sources of money other than the money people earn themselves
28 Jul 2014 Leave a comment
in liberalism, public economics Tags: Margaret Thatcher
Have you ever heard of a private firm proposing to solve a shortage of the product it sells by telling people to buy less?
27 Jun 2014 Leave a comment
Tax Freedom Day
04 Jun 2014 Leave a comment
in public economics, taxation Tags: taxes
HT: Daniel Mitchell
Is Thomas Piketty a double secret supply-side economist?
03 Jun 2014 Leave a comment
in entrepreneurship, labour supply, public economics Tags: laffer curve, supply-side economics, Thomas Peketty
When a government taxes a certain level of income or inheritance at a rate of 70 or 80 percent, the primary goal is obviously not to raise additional revenue (because these very high brackets never yield much).
It is rather to put an end to such incomes and large estates, which lawmakers have for one reason or another come to regard as socially unacceptable and economically unproductive…
The Company Tax Laffer curve
03 Jun 2014 Leave a comment
in public economics, taxation Tags: company tax rate, laffer curve
The Australian, New Zealand and Irish company taxes raised similar amounts of revenue as a percentage of GDP. The Irish company tax rate was 12.5% in 2003.
from The U.S. Corporate Income Tax System: Once a World Leader, Now A Millstone Around the Neck of American Business by the Tax Foundation via The Solution is the problem blog
Taxing Amazon.com sales | vox
05 May 2014 Leave a comment
in public economics Tags: amazon, substitution effects, tax incidence
When several US states passed laws to require the collection of sales tax on online purchases, households living in these states reduced their Amazon expenditures by 9.5%. In practice, only Amazon was affected by the tax.
The decline in Amazon purchases is offset by a 2% increase in purchases at local brick-and-mortar retailers and a 19.8% increase in purchases through the online operations of competing retailers. The decline in sales is sharpest (23%) for purchases above $300.
Online consumers are very sensitive to total prices, taxes and options to avoid taxes.
Enough taxation can reduce legal marijuana consumption to current regulated levels, and spare us the war on drugs
09 Apr 2014 Leave a comment
in applied welfare economics, law and economics, public economics Tags: illegal goods, marijuana, prohibition
The economics of illegal goods weighs extremely heavily in favour of legalization and taxation rather than banning and enforcing, as Gary Becker, Kevin Murphy, and Michael Grossman outline in The Economic Theory of Illegal Goods: The Case of Drugs (NBER Working Paper, 1994).
….If the government seeks to regulate the quantity of marijuana consumed, it should choose to do so with a pricing mechanism such as taxation (from which it can earn revenue) rather than a ban (which is costly to enforce). The result is otherwise the same.
Utopia, you are standing in it! 
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