Tag Archives: income

Corporate Tax Avoidance and Inversions

After a discussion about corporate tax avoidance, I made an interesting discovery that equating corporate inversions with moving profits overseas to avoid tax burdens is a common misconception.  In case anyone was wondering, that’s clearly untrue. Inversions are a uniquely American phenomenon since the US is the only developed country to force its home-based corporations to pay not only taxes in a foreign country, but also American taxes on profits earned abroad.  This is one of the more bizarre elements of the tax code and also results in Americans living overseas being forced to renounce their citizenship to avoid back taxes. Moreover, the State Department has tried to make it far more difficult to renounce your citizenship in order to keep people paying taxes.  Yes really. Continue reading

Analyzing the Minimum Wage: The Data

Today, we will look at the vast amount of data and see what conclusions we can draw from them, first looking at more seemingly partisan data on the Right and Left and working up from there (see my previous posts on Rights-based arguments and the importance of empiricism in economics).

The Right

This is one of the meta-analyses of Neumark and Wascher (the economists most cited in opposition to the minimum wage increases).  On page 115 we find the great line: “What is likely most striking to the reader who has managed to wade through our lengthy review is the wide range of estimates of the effects of the minimum wage on employment, especially when compared to the review by Brown et al. in 1982.”  That’s for sure. Continue reading