Paul Krugman

@paulkrugman ↗

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Last Checked Nov. 2, 2020

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Tue Oct 15 17:24:32 +0000 2019

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Paul Krugman @paulkrugman

Second, they avoided any analysis of incidence, adhering to what we used to call the flypaper theory of taxes — they stay where they're put (maybe these days call it the Post-It Note theory) In particular, all corporate taxes are considered to fall on stockholders 6/ — PolitiTweet.org

Posted Oct. 15, 2019 Hibernated

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Paul Krugman @paulkrugman

And their definition of what counts as transfers and therefore doesn't enter their analysis is unusually broad. EITC and refundable credits are excluded from the analysis rather than deducted from working-class taxes, even if workers pay more in payroll tax than they receive 5/ — PolitiTweet.org

Posted Oct. 15, 2019 Hibernated

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Paul Krugman @paulkrugman

But they consider the employer share of the payroll tax a tax on workers, even though corporations pay it. I think everyone agrees that this is right in terms of the incidence — it gets passed thru into lower wages. But weren't we avoiding considering incidence? 7/ — PolitiTweet.org

Posted Oct. 15, 2019 Hibernated