I haven't read the article yet.  The CBO director is Peter Orszag,
out of Berkeley and Brookings.  Not a supply-sider, but a deficit hawk.

Most feel the CIT is borne by capital (not just in the corporate sector).
Musgrave was the only one who supported the consumer burden view.
The more conservative types try to criticize the CIT as a tax on workers,
which IMO is silly.

I don't understand your point.  There are lots of holes in the CI tax base
(as for the individual income tax), but there is enough left to bring in a
couple of hundred billion a year.

I did a piece once showing you couldn't finance a social-democracy by
soaking the corps.  There isn't enough money there.  We could do better,
but there are limits.



-----Original Message-----
From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Jim Devine
Sent: Sunday, July 15, 2007 11:40 AM
To: [email protected]
Subject: Is there a tax expert in the house?


does anyone have a detailed critique of this article? isn't CBO run by
a supply-sider nowadays? does that affect the quality of their
studies?

is it reasonable to assume that the corporate income tax is really
paid by owners of capital? I don't think so: I think the corporate
income tax is basically a sales tax at this point (since the profits
that would be taxed -- such as scarcity rents from oil production --
are exempted from the tax) and thus paid by consumers.

> The New York Times
> TimesSelect News Tracker: economic view
> July 15, 2007 12:34 AM
> --------------------------------------
>
> Business / Your Money: Fair Taxes? Depends What You Mean by 'Fair'
> By N. GREGORY MANKIW
> Recent claims that the rich do not pay their fair share in
> taxes don't hold up under close examination.
>
> Full Story:
>
http://select.nytimes.com/mem/tnt.html?emc=tnt&tntget=2007/07/15/business/yo
urmoney/15view.html&tntemail0=y

--
Jim Devine /  "The tooth fairy teaches children that they can sell
body parts for money." -- David Richerby
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