Obituary – David Bradford

David Bradford was an advocate of tax simplification and flattened rates, and the author of “Untangling the Income Tax” (Harvard University Press, 1986). His first preference was for a straight consumption tax (VAT or sales tax). Another interesting proposal was a tax only earned income, leaving returns on capital untaxed. The reasoning behind this was that

  • earnings are roughly equivalent to consumption, given a low rate of savings;
  • such a tax could be made politically palatable by allowing some different tax rates;
  • it would eliminate the “tax arbitrage” of the mortgage interest exemption (high-bracket taxpayers pay deductible mortgage interest, some of which is in turn paid to low-bracket taxpayers as taxable income on passbook savings), and
  • it would be easier to administer and harder to evade than a VAT.

Dr. Bradford served in the Ford and Bush 41 administrations. His analysis of the income tax law in effect in the 1970’s led to the extraordinary bracket-flattening of the Tax Reform Act of 1986 during the Reagan administration. Another obituary here.

Update: Plus ça change, plus c’est la même chose.

Don’t Know Which Way They Will Jump

The reason why the Social Security system is in the news is easy enough to understand. The population of the US is aging, and when that big bubble of elderly demographic slides over into retirement age there won’t be enough people working in the country to support the people who want to see a benefits check sitting in the mailbox every month.

So the debate in the US is about a benefits package that, for most people, doesn’t provide enough after-retirement money to live on. This means that most people have to make some other arrangement in order to maintain their standard of living after they stop going to work every day. Heartless as it sounds, even if SS fails it won’t be a terrible tragedy for the majority.

This is the big debate in the US. What about the increasing number of old people in other countries?

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Linking to Another Blog

Just in case you’re not familiar with her work, Megan McArdle writes under the nom de blog as Jane Galt. Her work can be found at Asymmetrical Information.

Megan recently posted a few items that I think would be of interest to our readers. The first is entitled “Why can’t mothers find part time work?”, and it’s pretty insightful. Megan points out that there’s plenty of part time jobs out there, they’re just not top-flight careers that pull in $100K or more a year. The reason why employers don’t seem willing to help working mothers stay on the high powered career path is due to good reasons.

Megan follows this up with “More on the tenure track”, something that should be of interest to Ginny.

Megan ends with an untitled post where she makes the observation that academia is pretty much shooting itself in the foot by making such a big deal out of Larry Summers’s remarks.

Thanks to Norton, Ken & James

This is really more a comment to Ken’s discussion below and comes from a non-economist as well as James’s discussion of blogger tasks. (Ok, I’m a parasite.)

The importance of a meme, of a take, essentially, of an analogy, is important. Looking at underlying analogies seems another useful task of bloggers.

This week I taught Fred Strebeigh’s essay, first published in Bicycling in 1991. Strebeigh had gone to China to see a bicycling society in action and happened upon the Beijing Spring of 1989. He captures the excitement of that time, but woven throughout is a tribute to what we have and they, for that brief time, realized as energy and power. For instance, he notes the privacy of speech that came in the midst of movement as the streets filled with bicyclists; he describes how bikes made possible the assembly in the Tiananmen Square. He leaves Beijing as it erupts to interview a grad student; she had biked a thousand hard miles across China to Tibet. He found Fang Hui, who had been no athlete before setting out on this challenging trek. He asked her if she had worried about giving up on the journey and she had replied that no, before, she had feared giving up on life. Bicycling across country, instead, “I felt as if I would become light” she said. She demonstrated how dead we can feel cocooned and how alive tested.

Then, he describes a bicycle repairman who, through initiative and work outside the state economy, could afford two more children. My students were excited as well – they understood the power of these ideas. Strebeigh quite beautifully reports what he sees, but what he sees is the strength of the vision that impelled these people–a vision that impels us. He argues that the crack-down had been represented on television by shot after shot of crumpled bicycles, destroyed as the army took over the square and that open life, that open marketplace of ideas and talk and challenge was destroyed.

Sadly, we will no longer use this book. Some argue it is too difficult, others that it isn’t argumentative enough. Now, we are choosing among rhetorics crammed with the less subtle arguments of op-eds; they consider balance countering Paul Krugman with John Leo. But they won’t include the best of these writers, but rather the quick statements of position where space is too limited for nuance. The writing will be competent but obvious rather than rich & subtle. This semester, I lead up to the contrarian approach of Rauch’s “Defense of Prejudice”; his is an argument for the marketplace of ideas they can, by then, appreciate. Underlying those narrower, more “timely” takes will be a simplification of the marketplaces – of ideas, of goods, of speech. They will be designed to be “relevant” – which essentially means not wresting our students from the sense all of us had at 18 that the world began at our birth and our issues are the big issues.

And in many will be different metaphors. And that is why we now return to Ken & James.

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