tag:blogger.com,1999:blog-9208928.post112326732203958939..comments2024-03-29T03:16:05.261-04:00Comments on Start Making Sense: The Kotlikoff tax and entitlements reform planDaniel Shavirohttp://www.blogger.com/profile/14710628584922961682noreply@blogger.comBlogger111125tag:blogger.com,1999:blog-9208928.post-34934018412041412502021-10-30T02:55:10.206-04:002021-10-30T02:55:10.206-04:00I have read your blog it is very helpful for me. I...I have read your blog it is very helpful for me. I want to say thanks to you. <a href="https://www.reliablenv.com/pre-owned-cars/Chrysler" rel="nofollow">Buy Used Car in Las Vegas</a>Reliable Auto Saleshttps://www.blogger.com/profile/16575711428104492242noreply@blogger.comtag:blogger.com,1999:blog-9208928.post-55107243546118582382020-03-10T08:33:18.564-04:002020-03-10T08:33:18.564-04:00Good day everyone,
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Even Thom...To reach success, you have to persevere.<br />Even Thomas Edison had to learn this.<br />When he was creating the incandescent<br />light bulb, it took him more than 10,000<br />times to get it right. Keep striving<br />even when it becomes challenging.<br /><a href="http://www.creditrepairinfo.com/" rel="nofollow">credit Repair</a>Cathy Menahttps://www.blogger.com/profile/11635311170152966690noreply@blogger.comtag:blogger.com,1999:blog-9208928.post-59224916202492989782008-02-24T05:42:00.000-05:002008-02-24T05:42:00.000-05:00I am an academic economist.The USA drastically nee...I am an academic economist.<BR/><BR/>The USA drastically needs radical tax reform, but Kotlikoff-Ferguson is not what the patient requires. I prefer the following modification of Hall-Rabushka.<BR/><BR/>1. For every firm, calculate Sales - Purchases from<BR/>Other Firms - Investment Outlays.<BR/><BR/>2. Tax (1) at some flat rate t. A rate in the range of 28-35% should assure revenue neutrality.<BR/><BR/>3. Subtract FICA tax liabilities from (1).<BR/><BR/>4. Pay all legal residents of the USA a flat demogrant of $50-$65/week.<BR/><BR/>5. Multiply all transfer payments by (1-t). This would adjust these payments for the demogrant. this would also abolish all <BR/><BR/>6. The only benefit of being a nonprofit entity would be that donations would not be included in Sales in (1).<BR/><BR/>All income would be taxed once, at the source. Only firms, other employers, and the self-employed would need to file a tax return. This tax would be progressive in part because it would integrate a present-day regressive tax, FICA.<BR/><BR/>*******<BR/>Social Security reform: we wonks need to read critically the fine book by Gale and Orszag on reforming Social Security. <BR/>* OASDI benefits should be indexed to wages, not inflation;<BR/>* Benefits should be fully taxable (see above).<BR/>* I have calculated that starting SS benefits at age 62 maximizes the present value of benefits received for everyone who dies before their 85th birthday. The reward for delaying the start of SS should be increased.<BR/>* Raise the Medicare tax rate from 2.9% to 4%.<BR/><BR/>Americans should be given the opportunity to invest<BR/>much (but not all) of their FICA taxes in some mix<BR/>of the following index funds, whose management expenses would not exceed 10-12 basis points:<BR/>1.Actively traded American stocks<BR/>2. Short-term Federal debt<BR/>3. Middle term Federal debt (original issue maturity of 13 months to 7 years)<BR/>4. Long term Federal debt (maturity 7-30 years)<BR/>5. Corporate debt, municipal debt, and mortgage pool equivalents of (2)-(4). <BR/><BR/>Survivors and Disability benefits are paid by social insurances that, by their very nature, cannot be privatized.<BR/><BR/>**********<BR/>I rather doubt that the Kotlikoff-Ferguson proposal for containing Medicare & Medicaid costs will achieve anything.<BR/><BR/>Did you know that the annual cost of Medicare will, starting 2008 or 2009, surpass the cost of all Old Age benefits? Medical care for the aged will break<BR/>the back of the USA budget, unless the following steps are entertained:<BR/>* The remit of VA hospitals is expanded to include free health care for the aged. Health care in other<BR/>hospitals would be reimbursed at the VA hospital rate. 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