tag:blogger.com,1999:blog-4900303239154048192.post5542263786722667241..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Gavyn Davis on Auerbach’s Border AdjustmentsUnknownnoreply@blogger.comBlogger9125tag:blogger.com,1999:blog-4900303239154048192.post-27152176849497941542017-01-25T16:27:55.944-05:002017-01-25T16:27:55.944-05:00Thanks for the information provided. I think that ...Thanks for the information provided. I think that the US tax system needs improvement. Everything should work for people and be comfortable for them. I also think that the US tax system is quite complicated and it’s not always easy to figure out exactly what and how you have to pay. It’s <a href="http://quickandeasyloanservice.com/" rel="nofollow">easy to get loan</a> but not easy to pay taxes. And of course, tax system must be fair. It’s wrong that middle class people pay a lot of taxes.Anonymoushttps://www.blogger.com/profile/00869545082387307520noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-22673424638042208992017-01-17T14:35:04.573-05:002017-01-17T14:35:04.573-05:00Barkley - I'm fine with what Gavyn said about ...Barkley - I'm fine with what Gavyn said about the border adjustment issue as yes the dollar appreciation will tend to offset the labor subsidies either in part or fully (the fully said is what Auerbach is saying). I think this angle has been well covered.<br /><br />My complaint is that the transfer pricing side is not being well covered. Auerbach makes the bold claim that transfer pricing will no longer matter. That is just wrong. What Auerbach's proposal is effectively doing is turning the US into a tax haven and the world of transfer pricing on its head. Foreign governments who do take transfer pricing seriously are going to be quite unhappy if this mess passes.<br /><br />But here is the good news. Trump finds this idea to be "too complicated". I know people are laughing at Trump but it is too complicated. <br /><br />Max notes the alleged benefits of just switching to a consumption tax. That's fine but if that is what Speaker Ryan wants to do - then just do it without all the complications. ProGrowthLiberalhttps://www.blogger.com/profile/17138489390594441753noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-20653845647063772502017-01-17T14:03:45.035-05:002017-01-17T14:03:45.035-05:00Correction: There are 4 unanswered questions in fi...Correction: There are 4 unanswered questions in financial economics, not just 3. Examples of such are the equity premium puzzle. The behavioral list is goofy, with such things as tatonnement on the one hand and the search for a unified theory of biases on the other. On the international list, well, almost nothing in the theory of international economics seems to hold up in reality. I mean, heck, in a lot of markets the simple intro level law of supply and demand usually works, at least sort of most of the time.rosserjb@jmu.eduhttps://www.blogger.com/profile/09300046915843554101noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-56213664816712071862017-01-17T12:37:43.495-05:002017-01-17T12:37:43.495-05:00BTW, I should add that we really do not know what ...BTW, I should add that we really do not know what will happen with the dollar, and Davies's assumption of some sort of equilibrium outcome is also unwarranted. Forex rates are very simply the least predictable of all macro variables and are notorious for doing the darndest things.<br /><br />If one looks at the Wikipedia entry on "Unanswered Questions in Economics," 3 are supposedly on "Behavioral Economics," 3 are on "Financial Economics," but fully 6 are on "International Economics," with the majority of those ultimately boiling down to "Foreign exchange rates do not behave like our theories and models say they ought to." So, yeah, probably the dollar will go up like it did under Reagan, but we really do not know. Could plunge if he really screws up, which would ironically be good for all that midwestern manufacturing he promised to help out.rosserjb@jmu.eduhttps://www.blogger.com/profile/09300046915843554101noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-56261865315140518562017-01-17T11:52:49.928-05:002017-01-17T11:52:49.928-05:00Neither of you have it right. He is Gavyn Davies...Neither of you have it right. He is Gavyn Davies.<br /><br />Davies is right that this will have a tendency to appreciate the dollar. To put it mildly, a lot of the protectionist proposals being pushed by Trump and gang are likely to have this effect, which has already happened to some extent in anticipation of that. That this will not help out competitiveness of US industry goes without saying, snort!rosserjb@jmu.eduhttps://www.blogger.com/profile/09300046915843554101noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-49162909191064867212017-01-17T10:55:27.351-05:002017-01-17T10:55:27.351-05:00You didn't mention that expensing is supposed ...You didn't mention that expensing is supposed to goose domestic investment. More broadly, this is a consumption tax, which is supposed to boost saving. I'm skeptical, as was David Bradford, a major advocate of consumption taxation.MaxSpeakhttps://www.blogger.com/profile/08594964334301228571noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-55619723139840459902017-01-16T21:53:14.326-05:002017-01-16T21:53:14.326-05:00I know what you mean. Place makes me register eve...I know what you mean. Place makes me register every time.Jerry Brownnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-49116483553899234152017-01-16T19:21:15.435-05:002017-01-16T19:21:15.435-05:00Gavyn. Thanks Jerry. I sometimes screw up when I h...Gavyn. Thanks Jerry. I sometimes screw up when I have to do a work around the Financial Times subscription wall. ProGrowthLiberalhttps://www.blogger.com/profile/17138489390594441753noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-51732705804804631572017-01-16T19:11:12.972-05:002017-01-16T19:11:12.972-05:00Nice post.
I believe it is spelled Gavin Davies....Nice post. <br /><br />I believe it is spelled Gavin Davies. Jerry Brownnoreply@blogger.com