Mankiw

The Peril of Taxing Elite Higher Education


The investment that leads to growth is not just in plant and equipment. It also includes human capital, which means educating our labor force. And it includes the knowledge that flows from basic research. The United States is an economic superpower in part because we have the best university system in the world. **The tax bill undermines that.**
via Mankiw:The Peril of Taxing Elite Higher Education
This is a must read. The new taxes on Universities did not get the coverage it should have.

Mankiw makes an argument against raising the minimum wage

Mankiw makes an argument against raising the minimum wage:

Mankiw makes an argument against raising the minimum wage.

My two big issues with this is that the EITC acts as a de-facto subsidy to those who hire low wage workers. This subsidy would, (using Mankiw’s logic) dis-incentivize productivity gains via automation and advantage industries that are built around low-wage, low skill work.

So, why should the income tax system be used to subsidy low-wage, low-skill, low productivity workers and the industries that require them rather than advantage higher-skill, higher-wage higher productivity work?

Mankiw: Capital Gains vs. Ordinary Income, a little puzzle on policy.

Mankiw: Capital Gains vs. Ordinary Income, a little puzzle on policy.

If you have a job, the money you are paid for your work is ordinary income. If you buy an asset at one time and sell it later for a higher price, the profit you made from holding it is a capital gain. But is it really that easy? Consider five examples, and see if you can identify what is ordinary income and what is a capital gain.

Really great explanation. A must read.