When people discuss cutting taxes, the question of whether tax cuts can pay for themselves usually arises. I’ll try to answer that question here. The optimistic view says that tax cuts often pay for themselves because lower tax rates encourage economic growth. The larger economy then throws off higher tax revenue, offsetting the tax loss … Continue reading Can tax cuts pay for themselves?
This American retailer has a distinct business model. It aims to sell high volumes of merchandise at low prices. In pursuit of low prices, it bargains hard with its suppliers and grows impressive economies of scale. Its business model draws flocks of customers to its stores. It becomes the largest retailer in the entire world, … Continue reading Creative destruction
US healthcare is generally recognized for its significant innovation and quality medical care. However, it is even more widely recognized for having certain problems. Two main problems are usually cited. Problem #1 is that 10-15% of the population is uninsured at any point in time. Problem #2 is that medical care and health insurance are … Continue reading Origin of healthcare problems
It is an article of faith to some class warriors that the rich do not pay their “fair share” of taxes. Is it true? We can evaluate this claim since there is plenty of publicly available data. The data here comes from a 2016 CBO report. Effective tax rates It is difficult to look at … Continue reading Do the rich pay their fair share?