Tagged: scott sumner

Against capital gains taxes: Sumner edition - The Dismal Science

Eric Crampton Mar 12, 2015

Capital gains taxes still do not make economic sense.Here's Scott Sumner explaining that while wage and consumption taxes can be equivalent, capital gains taxes are effectively a distortionary tax on future consumption relative to present consumption.The biggest confusion is that people don’t understand why capital income should not be taxed, and why a wage tax is equivalent to a consumption … Read More

Kiwis trading on American futures - The Dismal Science

Eric Crampton Oct 11, 2014

There will soon be NGDP futures markets in which traders can buy and sell contracts paying out based on American quarterly nominal GDP. Scott Sumner's long advocated these kinds of markets for macroeconomic forecasting and as target for the Federal Reserve: the Fed should be targeting something like a 5% growth rate.But the markets won't be based in America. Read More