after five rounds of unsustainable tax cuts in 2001-10, federal tax revenues are now at a 60-year historical low of 14% of GDP, when the U.S. historical average is 19%. … we are now back to a second Gilded Age as income and wealth inequality is as high as in 1929 at the onset of the Great Depression after the Gilded Age of the 1920s. And
Since the recovery began, 38% of all jobs created in America have been created in Texas
“He credits tort reform (in addition to less regulation, low taxes, etc.”
He also talks about the natural gas boom in texas. He touts the Texas port. He says Texas is entrepreneurial. He says there are no state income taxes. He cites tort reform. He says that’s one reason lots of companies move there. He says limited government is also a factor.
Texas is 8% of the US population so this is significant.
Here are a few more stats :
Texas added 265,300 net jobs, out of the 722,200 nationwide, and by far outpaced every other state. New York was second with 98,200, Pennsylvania added 93,000, and it falls off from there.
Pennsylvania, Texas, and New York are the principal states in which the natural gas boom is taking place.
Carried Interest Tax Break Is So Unfair
“John Paulson, the most successful hedge-fund manager of all, bet against the mortgage market one year and then bet with Glenn Beck in the gold market the next. Paulson made himself $9 billion in fees in just two years. His current tax bill on that $9 billion? Zero.”
This is the trick: “So long as they leave their money, known as “carried interest,” in the hedge fund, their taxes are deferred. They only pay taxes when they cash out, which could be decades from now for younger managers. How do these hedge-fund managers get money in the meantime? By borrowing against the carried interest, often at absurdly low rates—currently about 2 percent.”
Young Europeans don’t work in part because they don’t have to: thanks to more generous student aid, they’re less likely to have to work while in school. But there’s also a lack of job opportunities. And the elderly retire earlier, largely thanks to generous benefits.
The paper krugman cites has a lot more, one eg:
The French riots of the banlieue in 2005 and riots in Southern Italy in January, 2010, remind us that many European youth are marginalized from contact with the market economy. … American youth are expected both by their parents and by colleges to work part‐time during the school year and full‐time during the summer. They adopt early a culture of work rather than idleness, and this continues after graduation from college. In contrast, judging from the low employment to population ratios for Europeans aged 15‐29, much of the time in this European age group is wasted, especially when we recognize the larger share of American youth compared to European youth going to college and hence removed from the employment‐population ratio.
The paper also says that the US also has more younger people as a percent of the total population than Europe.
The paper correctly points out, after tax wages in Europe are so low and benefits are so high that people take lots of time off.
Europe is essentially paying its youth not to work and is feeling some of the consequences.
The most interesting stat in here is that half of immigrants pay income taxes (federal and state). Of course they pay sales taxes directly and pay real estate taxes indirectly via renting. The only immigrants who do not pay income taxes are those who work “off the books” and thus their income taxes are not withheld.
This is a big deal because people bash illegal immigrants as freeloaders, but the data doesn’t really support that.
Tax compliance costs about 3% of our GDP
individuals and businesses must pay the government the $1 in revenue plus the costs of their own time spent filing and complying with the tax code; plus the tax collection costs of the IRS; plus the tax compliance outlays that individuals and businesses pay to help them file their taxes.
In a study published last week by the Laffer Center, my colleagues Wayne Winegarden, John Childs and I estimate that these costs alone are a staggering $431 billion annually. This is a cost markup of 30 cents on every dollar paid in taxes. And this is not even a complete accounting of the costs of tax complexity.
Pretty staggering and a big incentive to reduce complexity in the tax code.