In response to Hamilton’s upwardly redistributive “funding system,” which directed revenue from a regressive tax on whiskey to the wealthy owners of public debt, western Pennsylvania farmers revolted, seeking a new tax system that was “equal” – that is, proportionate to wealth. To the extent...
In the years following the American Revolution, the states and Congress struggled to pay down the domestic debt, which had consolidated in the hands of wealthy speculators. With a serious money shortage in the countryside, small farmers found they could not pay their taxes – and many were angry...
On June 22, 2022, William Gale testified before the House Select Committee on Economic Disparity and Fairness in Growth in a hearing entitled, "Tackling the Tax Code: Evaluating Fairness, Efficiency, and Potential to Spur Inclusive Economic Growth."
The Tax Cuts and Jobs Act of 2017 (TCJA) dramatically changed tax law, including how taxpayers deduct the interest on their home mortgages. It narrowed the deduction in several ways, so we would expect new mortgages to be smaller than old ones. But it also raised most taxpayers’ after-tax...
The Tax Cuts and Jobs Act of 2017 (TCJA) dramatically changed tax law. It narrowed the subsidy on mortgage interest in several ways, which should lower mortgages and home prices; it also increased most taxpayers’ after-tax incomes, which should have the opposite effect. Thus, the TCJA’s overall...
By examining federal aid to state and local governments during the Great Recession, we draw lessons that can inform current state and local efforts to build an inclusive economic recovery from the COVID-19 pandemic. We primarily compare the American Recovery and Reinvestment Act of 2009 with the...
Mainstream public finance research has largely ignored racial issues. This paper calls on public finance economists to explore racial issues more extensively. The obvious reasons are to understand the effects of inequitable and inefficient policies, help develop remedies,...
The murder of George Floyd in spring 2020 sparked a national reckoning and renewed attention to issues of racial equity and justice. This long-overdue awakening led me to read extensively about racism and to think about interactions between race and public policy. To be...
Life expectancy at age 65 has grown by about six years since Social Security began paying benefits in 1940 and, despite some recent temporary declines, is expected to increase significantly further in future decades. Despite a modest increase in the age at which people can claim full Social...
Interest rates on government debt have been falling in many countries for the last several decades, with markets indicating that rates may stay low well into the future. The recent economic crisis precipitated by the coronavirus only accentuates these trends. As...
The Whiskey Rebellion and the Fight for Equal Taxation in Early America
In response to Hamilton’s upwardly redistributive “funding system,” which directed revenue from a regressive tax on whiskey to the wealthy owners of public debt, western Pennsylvania farmers revolted, seeking a new tax system that was “equal” – that is, proportionate to wealth. To the extent...
Taxation and the Origins of the Constitution
In the years following the American Revolution, the states and Congress struggled to pay down the domestic debt, which had consolidated in the hands of wealthy speculators. With a serious money shortage in the countryside, small farmers found they could not pay their taxes – and many were angry...
Tackling the Tax Code: Evaluating Fairness, Efficiency, and Potential to Spur Inclusive Economic Growth
On June 22, 2022, William Gale testified before the House Select Committee on Economic Disparity and Fairness in Growth in a hearing entitled, "Tackling the Tax Code: Evaluating Fairness, Efficiency, and Potential to Spur Inclusive Economic Growth."
How Did the Tax Cuts and Jobs Act Of 2017 Affect the Housing Market?
The Tax Cuts and Jobs Act of 2017 (TCJA) dramatically changed tax law, including how taxpayers deduct the interest on their home mortgages. It narrowed the deduction in several ways, so we would expect new mortgages to be smaller than old ones. But it also raised most taxpayers’ after-tax...
New Evidence on The Effect of The TCJA On the Housing Market
The Tax Cuts and Jobs Act of 2017 (TCJA) dramatically changed tax law. It narrowed the subsidy on mortgage interest in several ways, which should lower mortgages and home prices; it also increased most taxpayers’ after-tax incomes, which should have the opposite effect. Thus, the TCJA’s overall...
Lessons from the American Recovery and Reinvestment Act for an Inclusive Recovery from the Pandemic
By examining federal aid to state and local governments during the Great Recession, we draw lessons that can inform current state and local efforts to build an inclusive economic recovery from the COVID-19 pandemic. We primarily compare the American Recovery and Reinvestment Act of 2009 with the...
Public Finance and Racism
Mainstream public finance research has largely ignored racial issues. This paper calls on public finance economists to explore racial issues more extensively. The obvious reasons are to understand the effects of inequitable and inefficient policies, help develop remedies,...
Reflections on What Makes a Policy Racist
The murder of George Floyd in spring 2020 sparked a national reckoning and renewed attention to issues of racial equity and justice. This long-overdue awakening led me to read extensively about racism and to think about interactions between race and public policy. To be...
Trickle-Down Social Security
Life expectancy at age 65 has grown by about six years since Social Security began paying benefits in 1940 and, despite some recent temporary declines, is expected to increase significantly further in future decades. Despite a modest increase in the age at which people can claim full Social...
Implications of Low Interest Rates for the Design of Tax Policy
Interest rates on government debt have been falling in many countries for the last several decades, with markets indicating that rates may stay low well into the future. The recent economic crisis precipitated by the coronavirus only accentuates these trends. As...