As to Biden's fiscal plan, I'm assuming this is really Jared Bernstein's plan. Biden has a lot of virtues, but he's never been known for being the smartest guy in the room. And with age he's definitely lost a step. Sometimes I listen to him and wonder if he hasn't had a few mini-strokes. But whatever his faults, he does seem to have a knack for surrounding himself with smart folks, and Jared Bernstein is clearly one of the smart guys...a trained sociologist who is also an accomplished economist.OK I get the Twitter and Facebook is lit up with pathetic attacks on Biden’s mental health. I hope this is not coming from the “Bernie Brothers” as this is the kind of garbage we expect from MAGA wearing hat stooges and those people in Moscow who are hoping to re-elect President Stooge. But 2slugbaits raises a good point about who one’s economic advisers. After all, Trump selects people like Lawrence Kudlow as his chief economic advisor so President Stooge can pretend to be the smartest person in the room. For a recovering Republican, Greg Mankiw elevated our political debate:
Most noteworthy is the huge increase in taxes on high-income households. The top one percent would see a 40 percent increase in federal taxes (all federal taxes combined). Their average federal tax rate would rise from 29.7 to 41.7 percent. If enacted, this plan would give us the most redistributionist tax code in many years. For comparison, in 1979, as the Reagan tax revolution was starting to pick up steam as a political movement, the tax rate for the top one percent was 35.1 percent--a rate that has never been reached since. By contrast, the middle quintile under the Biden plan would pay a federal tax rate of 13.5 percent, which is about the same as it has paid in recent years and much lower than the 19.1 percent rate it paid in 1979.The Tax Policy Center notes:
In this brief, we estimate the revenue and distributional effects of former vice president Joe Biden’s 2020 campaign tax proposals. Biden’s spending proposals would also have important distributional and economic effects, but we have not estimated the distributional effects of those initiatives. Our modeling assumptions are based on information released by the Biden campaign and conversations with its staff; we detail these assumptions in appendix B. We analyze Biden’s proposals as of February 23, 2020. Biden would increase income and payroll taxes on high-income individuals and increase income taxes on corporations. He would increase federal revenues by $4.0 trillion over the next decade. Under his plan, the highest-income households would see substantially larger tax increases than households in other income groups, both in dollar amounts and as share of their incomes.The political debate should focus on Biden’s fiscal proposals in contrast to Sander’s fiscal proposals. And following up on what 2slugbaits suggested, I would like to see who Biden is using as his economic advisers as well as who Sanders is using as his economic advisers.