Tax Briefing With Ways and Means Chairman Kevin Brady
Goodman Institute is hosting a Capitol Hill briefing on the House Republican tax plan with Chairman Kevin Brady, and Boston University economist Laurence Kotlikoff.
Thursday, 06.22.17 12:00 – 1:00 pm RT
In Room H-137 U.S. Capitol
— This is a widely attended event and lunch will be served. —
Prof. Kotlikoff and Berkeley economist Alan Auerbach are the academic sources of the Ryan/Brady tax bill (“The Better Way”) and they have recently completed an analysis of the plan for the Goodman Institute, using very high level, first-of-their-kind computer models. (Each estimate requires several computers running for 14 hours.)
The surprising results were reported in the Wall Street Journal by Kotlikoff:
- There is no give-a-way to the rich: the plan is “almost as fair” as the current system.
- There are no huge deficits: in fact, the plan gains revenue for the government.
- There is a boost in wages: about $4,000 in additional take-home pay every year for the average household.
Their study will soon be posted at the NBER Working Paper web site and has these features:
- Their model of how international capital flows respond to country tax policies has 17 sectors and is by far the most sophisticated of its kind.
- Their method of measuring progressivity is light years ahead of everyone else, including the CBO and Brookings institution.
- Since they find that burden of the corporate income tax falls on workers, the Ryan/Brady bill does something that may surprise many Republicans and Democrats: It replaces a tax on labor with a tax on wealth.
Waylon Tate | email@example.com