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The supply-side economics of JFK
23 Sep 2015 Leave a comment
in applied price theory, applied welfare economics, politics - USA, Public Choice Tags: JFK, supply-side economics, taxation and growth, taxation and investment, taxation and the labour supply
The great divergence in average and marginal tax rates in New Zealand since 2000
20 Aug 2015 1 Comment
in applied price theory, applied welfare economics, human capital, labour supply, politics - New Zealand, public economics Tags: family tax credits, lost decades, taxation and the labour supply
21% would have been a good guess of the average and marginal tax rates of the New Zealand single earner or couple including with children and even a second earner in 2001. New Zealand average and marginal tax rates have been on a wild ride since the year 2000.
Sources: OECD StatExtract and OECD Taxing Wages.
As the above chart shows, while the average tax rate of a single earner with no children is pretty much unchanged at about 20%, he now faces a marginal tax rate of 30% or more rather than 21% in 2001.
For a married couple with one income, as the above chart shows, their average tax rate has been about zero for a good 10 years now but their net marginal tax rate is a good 50% or more because of abatement rates on family tax credits, which is a skewed incentive situation. A large income effect from the family tax credit encourages the consumption of leisure but a high marginal tax rate discourages working more.
Sources: OECD StatExtract and OECD Taxing Wages.
For two earner couples, their average tax rates have fallen because of family tax credits but their marginal tax rates have gone through the roof as the above chart shows. A tax system that discourages quite severely any further work or investment in human capital by average earners may have adverse effects on the long-term trend growth rate of New Zealand.
The taxes paid by the rich, middle-class and the poorer in the USA
09 Aug 2015 Leave a comment
in politics - USA, public economics Tags: creative destruction, entrepreneurial alertness, envy, taxation and entrepreneurship, taxation and investment, taxation and the labour supply, top 1%
Average Income Before & After Federal Taxes from "An Illustrated Guide to Income" bit.ly/1j9ymXF #inequality http://t.co/eabwDATSlU—
Catherine Mulbrandon (@VisualEcon) April 28, 2014
The tax rates of the top 1%
04 Aug 2015 Leave a comment
in applied welfare economics, entrepreneurship, fisheries economics, income redistribution, politics - USA, rentseeking Tags: entrepreneurial alertness, envy, taxation and entrepreneurship, taxation and investment, taxation and the labour supply, top 1%
Historical Tax Rates of Top 0.01% (15,000 returns reporting more than $8 million in 2010) visualizingeconomics.com/blog/2013/8/14… http://t.co/XygW0t0npu—
Catherine Mulbrandon (@VisualEcon) August 15, 2013
Trigger warning for the Twitter Left
31 Jul 2015 Leave a comment
in applied price theory, applied welfare economics, constitutional political economy, income redistribution, politics - Australia, politics - New Zealand, politics - USA, Public Choice, public economics, rentseeking Tags: antimarket bias, endogenous growth theory, expressive voting, laffer curve, Leftover Left, taxation and entrepreneurship, taxation and human capital, taxation and investment, taxation and the labour supply, top 1%, Twitter left
Taxes on minimum wage earners across the OECD area
28 Jul 2015 Leave a comment
in labour economics, labour supply, politics - Australia, politics - New Zealand, politics - USA, welfare reform Tags: earned income tax credits, family tax credits, in-work tax credits, taxation and the labour supply
#MinimumWage shd be combined w/ #tax policies to help both workers & their employers; see bit.ly/1KfRNOB http://t.co/8klfJXmY4s—
(@OECD) July 25, 2015
Tax revenues as a percentage of GDP, selected OECD member countries
28 Jul 2015 Leave a comment
in politics - Australia, politics - USA, public economics Tags: Eurosclerosis, growth of government, sick man of Europe, size of government, taxation and entrepreneurship, taxation and investment, taxation and the labour supply
How does America's tax revenue compare to the average collected by OECD countries? bit.ly/1HTtRTg #TaxDay http://t.co/Q17jMuwtNI—
The Hamilton Project (@hamiltonproj) April 15, 2015
Gary Becker and Kevin Murphy on inequality and growth in living standards
23 Jul 2015 Leave a comment
The average worker doesn’t pay much in income taxes in New Zealand. Then who does?
17 Jul 2015 Leave a comment
in politics - Australia, politics - New Zealand, politics - USA, public economics, taxation Tags: growth of government, size of government, tax burdens, taxation and the labour supply
Child poverty certainly didn’t go up after the 1996 federal welfare reforms
01 Jul 2015 1 Comment
in gender, labour economics, labour supply, poverty and inequality, welfare reform Tags: 1996, child poverty, economics of fertility, single mothers, single parents, taxation and the labour supply, welfare reforms
Working population poverty is unchanged despite declines in elderly and child poverty #PovertyIs http://t.co/i7O7dTEUg2—
Political Line (@PoliticalLine) June 19, 2015
Utopia, you are standing in it! 
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