James Pethokoukis

AEIThe best kind of middle-class tax cuts? The kind that are paid for So this is how one should think and talk about tax cuts. My AEI colleague James Capretta argues it's a good idea to give middle-class Americans a tax cut by reducing payroll taxes. He notes that two-thirds of households with incomes below $100,000 pay more in payroll taxes than incomes taxes. Capretta: “A 2 percentage-point reduction in the total tax would increase the after-tax income of a household with $50,000 in earned income by $1,000. ” US Secretary of the Treasury Steven Mnuchin and Director of the National Economic [...]
Fri, Sep 15, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIYes to middle-class tax cuts, as long as they are paid for So this is how one should think and talk about tax cuts. My AEI colleague James Capretta argues it's a good idea to give middle-class Americans a tax cut by reducing payroll taxes. He notes that two-thirds of households with incomes below $100,000 pay more in payroll taxes than incomes taxes. Capretta: “A 2 percentage-point reduction in the total tax would increase the after-tax income of a household with $50,000 in earned income by $1,000. ” US Secretary of the Treasury Steven Mnuchin and Director of the National Economic Council [...]
Fri, Sep 15, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEI‘A Culture of Growth:' A long read Q&A with economic historian Joel Mokyr Why did the West grow rich in the 18th century after thousands of years of nearly zero economic growth? Joel Mokyr, an economic historian at Northwestern University, contends that it was the culture in Western Europe that sparked the Great Enrichment. Joel Mokyr is the author of the recent book, “A Culture of Growth: The Origins of the Modern Economy.” He joins me on the podcast to discuss his argument, what the lessons of economic history can teach us about the future of innovation, and whether the techno-optimists or [...]
Fri, Sep 15, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIWhen the West got rich: A short-read Q&A with economic historian Joel Mokyr Why did the West grow rich in the 18th century after thousands of years of nearly zero economic growth? Joel Mokyr, an economic historian at Northwestern University, contends that it was the culture in Western Europe that sparked the Great Enrichment. Joel Mokyr is the author of the recent book, “A Culture of Growth: The Origins of the Modern Economy.” He joins me on the podcast to discuss his argument, what the lessons of economic history can teach us about the future of innovation, and whether the techno-optimists or [...]
Fri, Sep 15, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIWhy a city might want to compete hard to get Amazon HQ2 Every American governor or mayor would love to preside over the “next Silicon Valley.” Since 2011, California has grown twice as fast as the rest of the nation, helped by white-hot 6% annual growth in the San Jose area — home to the actual Silicon Valley, according to JPMorgan. Even regions that are currently tech hubs would love to attract even more high-potential startups and venture capital firms. So, yeah, expect the mother of all bidding wars for Amazon HQ2 — and the 50,000 high-paying jobs and $5 billion [...]
Fri, Sep 08, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIHow to help those Apple janitors without using a time machine Life as a Kodak janitor in the early 1980s was a lot different than life as an Apple janitor today, Neil Irwin writes in the New York Times. Pay is about the same in real terms, but the Apple janitor, a contract worker, doesn't have the benefits of her Kodak counterpart. Nor, it seems, the same opportunity for advancement. More broadly, while both companies created/create lots of high paying jobs, Kodak also created plenty of decent working class jobs: ” . . . tens of thousands of machine operators, warehouse [...]
Thu, Sep 07, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIAre tech advances better than government rules at protecting a free and open internet? Competition seems like a pretty important element guaranteeing a free and open internet. As venture capitalist Marc Andreessen has put it: “Imagine there are five competitors to every home for broadband: telcos, cable, Google Fiber, mobile carriers, and unlicensed spectrum. In that world, net neutrality is a much less central issue, because if you've got competition, if one of your providers started to screw with you, you'd just switch to another one of your providers.” Image via Twenty20. This is one reason I've been so excited about the prospect [...]
Thu, Sep 07, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIDon't fear the future: Congress just did something good on promoting driverless cars Congress needs to raise the debt ceiling. But beyond that, there may be no more important priority right now than passing legislation to accelerate the introduction of autonomous vehicles. US highway deaths are climbing, and the economic loss from auto accidents is nearly $1 trillion a year. Coming soon to a road near you? Not yet, but Congress just brought the dream of widespread use of autonomous cars a little closer to reality. REUTERS/Aaron Josefczyk Good news, then, that the House has unanimously approved a bill that would clearly establish [...]
Wed, Sep 06, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIThe US remains a low-tax country, even if President Trump keeps oddly saying otherwise The United States continues to not be the highest taxed nation in the world, even though President Trump keeps saying otherwise. Again, this morning (via Twitter): “I Will be going to North Dakota today to discuss tax reform and tax cuts. We are the highest taxed nation in the world – that will change.” It won't. Because we're not. Not at all, actually. Total US tax revenue was 26% of the GDP in 2014 vs. an OECD average of 34.4% and the top share of 34.4% in [...]
Wed, Sep 06, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEITrump's immigration and trade policies are being driven by pessimism and bad economics During the 2016 presidential campaign, Donald Trump would talk about the “mindset” America needed to solve its problems. Although Trump didn't go into much detail, the context suggests he meant the can-do, deal-making attitude of a successful businessperson. It's an attitude or view that sees challenges as opportunities. Withdrawing from a successful trade agreement with South Korea and revoking DACA betray a mindset dominated by faulty, zero-sum economic thinking. Image via REUTERS/Carlos Barria. But what is the mindset that suggests it's a good idea right now to threaten withdrawal from [...]
Tue, Sep 05, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS