Thursday, October 17, 2013
Alan Auerbach (UC-Berkeley) presents The Fiscal Gap, the 1% and the Role of Tax Reform at UCLA today, drawing on two papers:
(with William G. Gale (Tax Policy Center):
While political leaders remain tied up in discussions of government shutdowns and debt ceiling increases, we focus on the medium- and long-term budget outlook, where more serious challenges lie. With the passage of the American Taxpayer Relief Act, the imposition of the sequester, and changes in health care cost projections, some observers are claiming that fiscal issues have been resolved. The release of several new reports provides an opportunity to re-examine these issues. Our overarching conclusion is that, while the nation faces many other pressing economic and social issues, we are still far from attaining a sustainable fiscal policy.
The Mirrlees Review: A U.S. Perspective, 65 Nat. Tax J. 685 (2012):
The recently completed Mirrlees Review focuses on reforming the UK tax system. It represents an unusual blend of “best practice” application of economic theory and evidence to realistic policy design; it lays out policy proposals with sufficient justification and specificity that they go well beyond a statement of principles for reform. This paper examines the lessons that can be drawn from the analysis and conclusions of the Mirrlees Review, which have broad value especially for advanced countries like the United States that share many of the characteristics of the UK and face many of the same issues of tax policy design.