The No-Brainer Economic Platform

[Jludo]

I can't say enough good things about this episode. It lists the 6 economic changes that economists from all over the political spectrum agree on but no politician can get elected on.


How many folks are students of economics and agree with these positions?


On today's show: The Planet Money economic platform. Backed by the brightest minds in modern economics. Pure poison to any politician that embraces it.

Episode 387: The No-Brainer Economic Platform : Planet Money : NPR

 

[HoughMade]

1. Mortgage interest deduction- only as part of a flat tax Regressive? You can’t cherry pick one deduction and ignore the fact that upper income earners pay a huge percentage of the taxes. They act like this is the government’s money to begin with. It’s not.

2. Health insurance deduction- maybe a decent idea in 2012. It’s not going to work in an Obamacare world.

3. Get rid of corporate taxes- agree

4. Replace income tax with consumption tax. I’d like to hear more about this, but I can see that.

5. Carbon tax- Oh for the love of pete. To portray that Russ Roberts agrees with this is not intellectually honest. He said that some level of government intervention in environmental issues would be appropriate, which is a long way away from what was being proposed.

6. Legalize drugs- I could get on board as to most forms of MJ legalization

 

[Jludo]

1. Mortgage interest deduction- only as part of a flat tax Regressive? You can’t cherry pick one deduction and ignore the fact that upper income earners pay a huge percentage of the taxes. They act like this is the government’s money to begin with. It’s not.

I don't follow. Do away with all deductions, as they are market distortions, and lower the overall tax rate where ever you do get taxed. The argument isn't that taxes should be higher but that the narrow, targeted deductions we do give are economically unsound.

 

[HoughMade]

I don't follow. Do away with all deductions, as they are market distortions, and lower the overall tax rate where ever you do get taxed. The argument isn't that taxes should be higher but that the narrow, targeted deductions we do give are economically unsound.

Doing away with all deductions without eliminating the "progressive" tax and lowering the rate...a flat tax, is simply raising taxes on everyone. I do not support raising taxes on anyone who is actually paying them no matter what the tax is. Eliminating deductions alone is raising taxes. As part of a comprehensive revamp as the tax system, eliminate them. Doing away with deductions without a comprehensive revamp? No- it is simply raising taxes and raising taxes more on those who pay more already.

 

[Jludo]

Doing away with all deductions without eliminating the "progressive" tax and lowering the rate...a flat tax, is simply raising taxes on everyone. I do not support raising taxes on anyone who is actually paying them no matter what the tax is. Eliminating deductions alone is raising taxes. As part of a comprehensive revamp as the tax system, eliminate them. Doing away with deductions without a comprehensive revamp? No- it is simply raising taxes and raising taxes more on those who pay more already.

I agree the 'government is giving you 5k' is a liberal skew on taxation but that is exactly why we need to do away with all deductions and simply lower the overall tax rate. Would you be agreeable to eliminating all deductions if the overall tax rate was reduced so as to bring in the exact same revenue it was before?

I'm just being selfish here as I don't have kids, not married, don't own a home...I'd rather see tax rates fall and deductions go away. I don't think you should pay less in income tax just because you have kids or a mortgage.