The Reality-Based Community

Everyone is entitled to his own opinion, but not his own facts.

  • Home
  • About
  • BOTEC Analysis
You are here: Home / Everything Else / Extremely Subtle GOP Public Finance Theory

Extremely Subtle GOP Public Finance Theory

October 31, 2011 By Jonathan Zasloff

In the middle of his evisceration of the House Republicans’ attack on the Affordable Care Act, MIT’s Jonathan Gruber notes that the attack claims that the ACA’s tax credits are a form of spending.

But…but…but…Saint Grover says that we cannot get rid of any corporate welfare tax credits because that is a tax increase!  So wouldn’t the ACA’s tax credits be a form of “tax relief”?

Silly me.  Tax credits that support, say, large oil companies are not spending: they are tax relief.  Tax credits that increase working families’ capacity to buy health insurance are spending, and are thus wasteful.

Of course it is irrelevant that the ACA’s credits are refundable.  All those who receive these credits are working, so they also pay Social Security, Medicare, state, local, and sales taxes.  The ACA credits offset those, too, because money is fungible.

So once again: tax credits for corporate welfare, good; tax credits to cover the uninsured, bad.

I’m sure glad we cleared that up.

Filed Under: Everything Else Tagged With: Affordable Care Act, Macroeconomic Policy, Republican Party, Watching Conservatives

Comments

  1. kevo says

    October 31, 2011 at 7:04 pm

    Yo, wake up and smell the Denny’s coffee, if you can afford it!

    The one percent apologists will pull all stops to hoodwink the unassuming American electorate, simply because that is what they’re paid for – make up look like down, and down to look like up if that’s what the measure of the day demands.

    The assault upon America’s working and middle class citizens continues as corporate citizens still have a few of us to fleece!

  2. KLG says

    October 31, 2011 at 7:25 pm

    Jonathan Gruber makes sense in a universe where ACA has reached all the way to the level of something-better-than-nothing, but I have to ask where Professor Gruber is getting his research/consulting money these days?

    • Katja says

      October 31, 2011 at 9:26 pm

      Generally, you can look at his papers. Academics often list sources of funding in their papers (most importantly, to document to providers of grants what they have done with the money they were given). Some publications, such as the NEJM, require extensive disclosure forms.

      • KLG says

        November 1, 2011 at 1:33 pm

        Yes, I know. Every paper (a feeble 26 at last count in PubMed) I have ever published has acknowledged financial support, among other things, including potential conflicts of interest (very rare in my basic science field). But IIRC, back when Professor Gruber was shilling (OK, advocating) for the President’s health care initiative he neglected to mention that he had a substantial consulting contract with the federal government. That “oversight” casts doubt on his veracity. That’s all.

        • Skip Intro says

          November 2, 2011 at 5:46 pm

          Is your implication that the House Committee on Oversight and Government Reform does not make the claims Gruber says it does? If that is not your implication, what, specifically, does Gruber claim that you doubt?

  3. paul says

    November 1, 2011 at 5:51 am

    I think the argument is slightly more complicated than that. You see, poor and middle-class people, even when they work two or three shifts to keep their families housed and fed, don’t create jobs. So they don’t deserve tax relief. Corporations, on the other hand, do create jobs, so they deserve tax relief, both as a reward for their highly moral behavior and as an incentive to create more jobs. Once you recognize that job creation has everything to do with taxes and nothing to do with demand for goods and services (or at least nothing to do with the quantity of goods and services demanded by the income-constrained, aka the poor and middle-class) then everything else falls out automatically.

Blogroll

  • Balloon Juice
  • The Belgravia Dispatch
  • Brad DeLong
  • Cop in the ‘hood
  • Crooked Timber
  • Crooks and Liars
  • Echidne of the Snakes
  • Firedoglake
  • A Fistful of Euros
  • Healthinsurance.org Blog
  • Horizons
  • How Appealing
  • The Incidental Economist
  • Informed Comment — Juan Cole
  • Jonathan Bernstein
  • Kevin Drum
  • Marginal Revolution — Tyler Cowen
  • Marijuana Monitor
  • The Moderate Voice
  • Obsidian Wings
  • Patheos
  • Philosoraptor
  • Plato o Plomo — Alejandro Hope
  • Political Animal
  • Politics Upside Down
  • Progressive Blog Digest
  • Progressive Blue
  • Slacktivist
  • Snopes
  • Strange Doctrines
  • Ta-Nehisi Coates
  • The Volokh Conspiracy (Washington Post)
  • Vox Pop

Recent Posts

  • Percentages and the pastrami panic…
  • Do professors care whether college students are actually learning?
  • Cannabis News Round-Up
  • Emergency
  • Weekend Film Recommendation: Hangover Square

Archives

Topic Areas

Copyright © 2017 The Reality-Based Community  •  Designed & Developed by ReadyMadeWeb LLC