TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Tuesday, February 19, 2019

Simkovic: Taxes, Spending, And Innovation

Michael Simkovic (USC), Taxes, Spending, and Innovation:

  • Innovation is the product of teamwork.
  • Engineers and scientists play a critical role.
  • Scientific research is insufficiently rewarded financially.
  • Taxes can boost innovation by funding human capital investment and basic research.
  • The amount of investment is important – who owns financial assets is not.

In formulating taxation and public investment policies, we should carefully consider data and the peer reviewed literature. Claims that we can drive more innovation and growth through a higher concentration of resources in the hands of a small number of billionaires—while providing fewer resources to middle and upper middle-class knowledge workers—are not empirically supported.

https://taxprof.typepad.com/taxprof_blog/2019/02/simkovic-taxes-spending-and-innovation.html

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Comments

"Claims that we can drive more innovation and growth through a higher concentration of resources in the hands of a small number of billionaires—while providing fewer resources to middle and upper middle-class knowledge workers—are not empirically supported."

Unfortunately, though, they're politically supported by the Republican Party (and by some Democrats as well). The only real way to change that is a Democratic trifecta in 2020: the presidency, continued control of the House, and re-taking the Senate.

Posted by: Gerald Scorse | Feb 19, 2019 1:33:05 PM