MMT argues that “taxes drive money” in the sense that imposition of a tax that is payable in the national government’s own currency will create demand for that currency. Sovereign government does not really need revenue in its own currency in order to spend.
Read more...Most economists deride Thomas Piketty’s recommendation of a wealth tax as the remedy to inequality. It might help if they did some empirical research.
Read more...It’s been creepy to see economists and the financial media cheering the re-levering by American households as a sign that they economy is on the mend and consumers are regaining their will to shop. The number of Americans who are tapping into their 401 (k) accounts is proof that the financial health of ordinary Americans is far from robust.
Read more...Michael Hudson discusses how Thomas Piketty’s new book Capital in the 21st Century greatly understates the degree of wealth concentration with Karl Fitzgerald of Renegade Economists.
Read more...Yves here. The subject of inequality in income and wealth has, in the last year or so, become an oft-mentioned topic in economic and political commentary. It’s now even acceptable to use the word “oligarchy” to describe the US. Yet too often lost in the debate is that this type of inequality is the result of what right society allows various members to have. For instance, in the last 30 years, intellectual property laws have gotten stronger while the rights of workers to organize have been cut back.
We had a more equitable society when unions were stronger, taxes were more progressive, and anti-trust laws were enforced. This post by Geoff Davis serves as a reminder that there are remedies other than progressive taxation (which he regards as an after-the-fact remedy) to achieve that end.
Read more...Contrary to the claims of some overwrought Easter weekend posts, the tax court did not revoke attorney-client privilege. Here’s why.
Read more...ur nation’s tax code reflects our corrupt politics. The code contains many provisions that benefit our wealthiest, most powerful companies and people while hurting the rest of us.
Read more...Paul Krugman discusses Thomas Piketty’s new book, Capital in the Twenty-First Century, on Bill Moyers’ show.
Read more...While Congress cowers before multinationals’ lobbyists and moves to re-enact loopholes that let corporations like GE and Apple hide their income from the IRS, the Maine Legislature decided it had had enough.
Read more...We participated in a Room for Debate forum at the New York Times, on the topic of “Was Marx Right?” Readers are likely to say, “But of course!” Yet Marx had such a large opus and his forecasts were so bold that any fair reading has to come to more nuanced conclusion.
Read more...Our efforts to learn more about the private equity industry are revealing how determined public pension funds are to hiding as much as they can, even when they don’t have a legal leg to stand on.
Read more...Bitcoin is getting hammered today.
Read more...We told readers earlier this month that the IRS was well-nigh certain to deem Bitcoin to be property, not a currency, and that would deter its use in commerce. We got pushback from Bitcoin defenders, who tried several lines of argument, basically along the lines of “digital currencies are inevitable” and “the tax authorities are irrelevant”. Today, the IRS issued a release that states that it regards Bitcoin as tradeable property, which will make it cumbersome to use it in commercial transactions.
Read more...Yves here. I must confess I find it difficult to counter the simple-minded and inaccurate arguments of the deficit scaremongers. Joe Firestone offers some pointers
Read more...The great David Cay Johnston has obtained a letter written by a veteran IRS lawyer to 10 members of the Senate Finance Committee, alleging not only a gaggle workplace conduct violations but favoritism toward well-connected tax filers and even document fraud.
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