Friday, October 01, 2010

Austan Goolsbee disappoints on taxes (and being truthful)

Here he is with a nifty populist trick, specifically, talking about how big a tax cut the high income earners get from the GOP proposal.

The sleight of hand here, of course, is that he doesn't show us that those same earners pay even a more out-sized share of taxes, even after the proposed cuts.

And those households earning less than $40,000? If they can claim EITC and Dependent Care credits, they are probably paying negative taxes, i.e. getting money from the government. How do you draw a negative circle? Fortunately, the whiteboard approach for an economist is like mirrors, lighting, and nubile assistants for a magician.

I liked this Goolsbee better. I am not surprised, though, because he's done this type of thing before.

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