Retired accountant. Recovering tax blogger. Views are mine alone. (who else would want them?)
Evergreen Park, IL
Joined January 2008
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Joe Kristan retweeted
What's amazing is how successful mainstream parties in advanced economies are in repackaging these intergenerational transfers from the young to the old as something much more wholesome. They've been so effective that they always get the young to show up to protest in favor of the status quo. And the status quo is clearly very bad for the young.
In Italy is even worse. There is very little welfare state, the vast majority are transfers from the young to the old. This is the reason why at the #festinteconomia I proposed an estate tax on the boomers giornalelavoce.it/news/attua…
I posted this late yesterday about the legacy of the 1986 tax reforms, which just turned 40 years old. Much is taken, but much abides. substack.com/@joekristan/not…
Much is taken, but much abides: my thoughts on the anniversary of the 1986 tax reforms. joesaysso.substack.com/p/40-…
Joe Kristan retweeted
The key reason is this:
People who did not fall off the turnip truck yesterday know the truth about "one time" taxes. Especially this one that spends the money on recurring programs instead of one time expenses.
My source for CA prop 40 leading to a permanent tax? Prof. Zucman:
The key problem is this:
Why would billionaires permanently leave California in response to a one-time tax owed if they lived there on January 1, 2026?
It would only make sense for them to leave if the tax becomes annual.
But if the tax becomes annual, it would also generate revenue annually — by virtue of, well, being annual.
Joe Kristan retweeted
This is the standard way to score tax policy. You score the law as written (in this case a one-time wealth tax) and the behavioral consequences from that law (people worried it will last moving).
There are arguments against that approach. But is not “highly inappropriate” or “dishonest” to do what JCT or any other neutral body would do.
Let’s be clear: this is a highly inappropriate way to model the effect of Prop 40 on taxpayer behavior.
For one, it’s a basic violation of rational expectations, a cornerstone of modern economics.
In Jaros and @joshrauh world, the billionaires act irrationally: they respond to a policy that does not exist and will never exist.
Economics students around the world are taught this is not an appropriate way to model behavior — but apparently in this context (fighting Prop 40) it’s OK.
Joe Kristan retweeted
A cornerstone of modern economics is that governments respond to incentives, just like other agents, and once they have developed and rolled out a new tool to tax people, they're likely to keep using it, regardless of what the law says. They can't credibly commit to not doing that. And billionaires may understand that governments will do just that.
Thinking about incentives rather than just looking at the text of the law is what economists do.
Let’s be clear: this is a highly inappropriate way to model the effect of Prop 40 on taxpayer behavior.
For one, it’s a basic violation of rational expectations, a cornerstone of modern economics.
In Jaros and @joshrauh world, the billionaires act irrationally: they respond to a policy that does not exist and will never exist.
Economics students around the world are taught this is not an appropriate way to model behavior — but apparently in this context (fighting Prop 40) it’s OK.
Joe Kristan retweeted
Termites alert! beaconjournal.com/story/opin…
The IRS accepted approximately $977 million in questionable claims for the recently enacted car loan interest deduction, according to an agency watchdog. taxnotes.co/4i5tf1q
Joe Kristan retweeted
1. This claim is downright false. The top 0.001% paid an avg effective tax rate in the high 30s in recent years
2. Zucman's published stats from 2018 confirmed this. Then he manipulated how he calculates them to fit his story. I caught him red handed.
xitter.cf/gabriel_zucman/status/…
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Ruin foreign markets and raise input costs with tariffs. Send some victims checks using taxes paid by others. Repeat as needed when elections approach.
Farmers will be eligible to receive one-time payments from the U.S. Department of Agriculture to provide relief for high fuel and input costs, @koons_cami reports. iowacapitaldispatch.com/2026…
Joe Kristan retweeted
"Taxing income once is not a loophole" might be my new tax reform mantra.
With an honorable mention of: it's a problem when you use gross receipts for tax policy
Joe Kristan retweeted
Eighteen Ukrainian soldiers died fighting for the U.S. in Iraq. Many more Ukrainian pilots and contractors died in Afghanistan.
Zero American soldiers fought for Ukraine.
.@POTUS: "We've given a lot to Ukraine. They've given nothing to us. Remember that."
Joe Kristan retweeted
Americans across the political spectrum are refusing to face adult financial realities. From the left demanding massive social spending without European-style taxes, to the right demanding tax cuts while ignoring major deficit drivers, everyone wants the reward without the responsibility.
wsj.com/opinion/free-express…
Joe Kristan retweeted
Because the mortgage was money you owed the bank. Property taxes are money you owe the government.
We should have a serious conversation about property tax reform in this country, but it's hard to have that conversation when people don't even want to understand the basics.
“I’m old. I’ve paid my home off,” said Ray Warner, a 72-year-old Akron resident. “Why would I pay property tax?”
Across the country, homeowners are asking the same question and revolting against property taxes at a scale not seen in a half century.
politico.com/news/magazine/2…
Decades ago someone told me I looked a little like Robert Redford. Unlikely, but fine.
Yesterday I was told I look like Daniel Patrick Moynahan.
At least it's not Strom Thurmond, yet.
Joe Kristan retweeted
Big countries dictating to smaller ones what their future will be. No. National sovereignty (and the defense of freedom) are worth safeguarding
BREAKING WSJ:
Vladimir Putin has proposed that he, Trump, and Xi Jinping meet next month to talk about Ukraine in an attempt to negotiate an end to the four-year conflict that would favor Moscow. wsj.com/world/russia/putin-f…
Joe Kristan retweeted
"What do I owe society?", asked the guy in the green.
“I’m old. I’ve paid my home off,” said Ray Warner, a 72-year-old Akron resident. “Why would I pay property tax?”
Across the country, homeowners are asking the same question and revolting against property taxes at a scale not seen in a half century.
politico.com/news/magazine/2…