Robert Waldmann — Optimal Taxation of Capital Income 2019 (let them Bern)

...the standard Judd 85/86 result that the optimal rate of taxation of capital income* goes to zero as time goes to infinity is what mathematicians call a boo boo (oopsie). The asserted theorem is false as explained by Ludwig Straub and Ivan Werning.…

Angry Bear
Optimal Taxation of Capital Income 2019 (let them Bern)

Robert Waldmann

See also

* We just raised the federal tax rate on capital gains and dividends from 15 percent to 23.8 percent, but most economists say these tax rates should be zero. Same goes for the corporate income tax.

Garett Jones explains, via the theoretical work of Christophe Chamley and Kenneth Judd:

Economists can't even get the math right? Oh, my!

Tax Foundation
Standard Economics Says Capital Income Taxes Should Be Zero

William McBride

Jared Bernstein — KS legislature for the win!

Supply-side economics and the Laffer curve fail in the State of Kansas.

The only thing you can be sure of re tax cuts is the first order effect: revenue losses. Beyond that, linkages between tax changes and growth are 98.8% phony rhetoric, 1.2% ambiguous economics. The KS legislature learned that the hard way, but at least they learned it.

On the Economy
KS legislature for the win!
Jared Bernstein | Senior Fellow at the Center on Budget and Policy Priorities and former Chief Economist and Economic Adviser to Vice President Joe Biden in the Obama Administration

Matias Vernengo — What's the matter with Kansas?

Supply-side economics fail.

Naked Keynesianism
What's the matter with Kansas?
Matias Vernengo | Associate Professor of Economics, Bucknell University

Peter Radford — Stagnation

The downscaling is said to fit with the empirical evidence, and in particular with the trends that seem to have set in since around 1980. 

In other words, a sputtering economic performance over the past few decades is seen as proof that we now live in more constrained times, where limited growth puts a cap on our latitude in dealing with economic issues. People drawing this conclusion almost inevitably then jump into discussions of how this reduced latitude implies a more austere role for government, and – naturally – that everyday folks just will have to manage on less. 

I have a slightly different perspective. 

The onset of the downward shift coincides quite neatly with another great beginning. That of an era of economic policy focused on supply side initiatives, giveaways to the rich, and of corporate welfare. Is it simply a strange coincidence that the entire post-Reagan era is exactly that we are now describing as one of lower growth? Or is it that the right of center free market policies that have dominated policy making throughout the west since the early 1980′s, are to blame?

The Radford Free Press
Stagnation
Peter Radford