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More on: Is a Tax Cut for Capital Good for Labor?

More on: Is a Tax Cut for Capital Good for Labor?

Greg Mankiw (Harvard) weighs in to show that there are theoretically large gains to labor when you reduce taxes on capital. Casey Mulligan (Chicago) cites Larry Summers’ own work to make a point that has long been standard fare in economics: a tax on capital is ultimately born by labor, not owners of capital. Alan Auerbach(Berkley) apparently agrees. See also John Cochrane (Stanford) and Steve Landsburg(Rochester).

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