On what do economists agree and disagree about the effects of taxes on economic growth? Q.On what do economists agree and disagree about the effects of taxes on economic growth? A.Economists generally agree that people and businesses respond to taxes and that large tax changes can move the economy. But economists have not (and probably cannot) pin down exactly how the economy works and how responsive people and businesses are to policy changes. As a result, economists often disagree about what models and parameters to use to analyze tax policies. Those scientific disagreements are sometimes amplified by value judgments about appropriate policy. Read more about On what do economists agree and disagree about the effects of taxes on economic growth?
What criticisms are levied against standard distributional analysis? Q.What criticisms are levied against standard distributional analysis? A. Economists disagree on which taxes to include, how to measure tax burdens, what to assume about tax incidence, how to measure income, what period of analysis to use, and whether to include outlays in the calculations. Read more about What criticisms are levied against standard distributional analysis?
How do financing methods affect the distributional analyses of tax cuts? Q.How do financing methods affect the distributional analyses of tax cuts? A. Tax cuts are financed through reductions in current outlays or higher government debt that will eventually have to be repaid. Distributional analyses omit this information as well as the effects of tax increases on current outlays and debt. Read more about How do financing methods affect the distributional analyses of tax cuts?
