How Colonies Can Liberate Themselves by Taxing Real Estate

A colony is an area of land belonging mostly to outsiders, who extract more than they put in, hold good property underused, and control local politics. Greece, Haiti and Puerto Rico are colonies. Given the political will, and absent military intervention, colonies can liberate themselves by taxing the land. . . . → Read More: How Colonies Can Liberate Themselves by Taxing Real Estate

Putting Land and Power Back into Economics

Rethinking the Economics of Land and Housing, by three British economists, puts land and power back into economics, by recognizing–as did the classical economists–that ownership natural resources conveys wealth and political power. It also provides an enlightening history of British postwar housing policy, which has gone from building inexpensive rental housing for the working class, to pumping up property values for the ownership class. . . . → Read More: Putting Land and Power Back into Economics

James Galbraith Tells Us What Everyone Needs to Know About Inequality

Inequality has surged in the U.S. over the last forty years; many observers now blame the deregulation and tax cuts for the rich starting with the presidency of Ronald Reagan in 1980. In his new short book, Inequality: What Everyone Needs to Know, James Galbraith explains how this happened through the change in U.S. industrial structure. He offers a surprising recommendation. . . . → Read More: James Galbraith Tells Us What Everyone Needs to Know About Inequality

Congressman Bill Foster Explains Why Middle Class Tax Cuts Lead To Economic Growth

If you give a dollar to a middle class family, they will spend it in the local economy and spur growth, or they will use it to make a high return investment, such as paying for their children’s college. If you give that same dollar to a very wealthy individual, instead of circulating it in the local economy, they will place it in lower-return investments, often offshore. . . . → Read More: Congressman Bill Foster Explains Why Middle Class Tax Cuts Lead To Economic Growth

Taxing Carbon is Like Taxing Diamonds

A carbon tax would operate much like a diamond tax, for reasons both of demand and supply. . . . → Read More: Taxing Carbon is Like Taxing Diamonds

How a Progressive Tax System Made Detroit a Powerhouse (and Could Again)

In 1995, we encountered a group of economic advisors to Governor John Engler of Michigan, intent on cutting property taxes. We reminded them of California’s 1979 Proposition 13. After Prop. 13 rolled back and froze property taxes, sales taxes reached crushing levels, budget crises became routine, local services collapsed, and public schools fell from the best in the nation to among the worst. But Engler was determined. . . . → Read More: How a Progressive Tax System Made Detroit a Powerhouse (and Could Again)

It Takes Government to Create Markets: Alex Marshall’s The Surprising Design of Market Economies

Conventional economics wittingly or unwittingly provides cover for the One Percent, by professing that “the market” operates benevolently on its own. Alex Marshall gives us an entertaining, thoughtful, and well-written antidote to this dangerous abstraction. . . . → Read More: It Takes Government to Create Markets: Alex Marshall’s The Surprising Design of Market Economies

It Takes Government to Create Markets: Alex Marshall’s The Surprising Design of Market Economies

Conventional economics wittingly or unwittingly provides cover for the One Percent, by professing that “the market” operates benevolently on its own. Alex Marshall gives us an entertaining, thoughtful, and well-written antidote to this dangerous abstraction. . . . → Read More: It Takes Government to Create Markets: Alex Marshall’s The Surprising Design of Market Economies

Grover Norquist is Right to Oppose Internet Sales Taxes

As most of us know, sales taxes are “regressive.” That is, when sales taxes are “passed on,” they fall harder on poorer customers than on richer ones. That’s why many states exempt food and medicine, as does New York, (except for restaurant food). But sales taxes are also “passed back” onto retailers and service providers. It’s the “passed back” portion of sales taxes that do the most damage, because—unlike profit taxes—they take a bite from gross revenues before expenses. Sales taxes fall hardest on small, labor-intensive retailers, with high volume and low profit margins. . . . → Read More: Grover Norquist is Right to Oppose Internet Sales Taxes

Raise the Minimum Wage or Cut Low-Wage Taxes?

My son is a low-wage worker, a short-order cook. President Obama just called for an increase in the federal minimum wage from $7.25 to $9.00 an hour. Yet he made no effort to save the “temporary stimulus” 2% payroll tax cut, which expired at the end of 2012. That will cost workers like my son about a week’s gross pay over a year—not insignificant when you’re barely scraping by. So what’s better for low-wage workers: an increase in the minimum wage or a decrease in payroll taxes? . . . → Read More: Raise the Minimum Wage or Cut Low-Wage Taxes?