US could reduce its contribution to global climate change by taxing emissions of carbon dioxide and other greenhouse gasses and use the resulting revenue to reduce corporate income taxes. This carbon-corporate tax swap would make our economy bigger, cleaner, and more efficient.
Taxes, spending, and deficits thus appear to be back to “normal.” If anything, fiscal policy in 2014 was slightly tighter than the average of the past four decades. But should we use the past 40 years as a benchmark for normal budget policy?
According to official budget rules, taxpayers will earn more than $200 billion over the next decade from new student loans, mortgage guarantees, and the Export-Import Bank. According to an alternative that CBO favors, taxpayers will lose more than $100 billion.
In principle, Congress ought to make prudent, considered decisions about taxes and spending programs. In reality, we’ve lurched from the fiscal cliff to a government shutdown to threats of default. It's time to fix how we decide the budget.
Yes, the government's open, but the budget battle isn't over yet. Congressional negotiators have until mid-December to craft a budget plan. Even if they strike a deal on time, it won't be enough, Marron says. The budget process is broken and it's time to fix it.
A new paper examining the lasting effects of the government shutdown estimates that it cost the US economy 120,000 jobs by October 12.
Eugene Fama, Lars Peter Hansen, and Robert Shiller won the Nobel Prize in Economics Monday. Why? For their work studying asset prices. Marron explores their work and explains why they won the prize.
Budget-watchers love to say that the United States has never defaulted on the Federal debt. It's a great talking point, but it isn't exactly true.
Failure by Congress to raise the debt limit will result in severe economic harm, Marron writes. A prolonged delay would be a powerful 'anti-stimulus' that could easily push our economy back into recession.
The legal woes of the most famous bitcoin exchange may illustrate a fundamental problem with the bitcoin market.
Once again, the US Treasury is facing the possibility of going past the debt limit, which could prompt major policy changes or minor tweaks to the Federal budget. This feels like a modern phenomenon, but debt limit showdowns are nothing new.
Public debt shrank from being 75 percent of GDP to 72.5 percent of GDP. Likewise, average spending is down from 21 percent of GDP to 20.5.
With $2 trillion in Treasury bonds in tow, the Federal Reserve has a huge impact on the government's fiscal health: the Fed strengthens the government's position while increasing the risk of future increases in interest rates.
Senate Finance Committee Chairman Sen. Max Baucus (D-Mont.) and House Ways and Means Committee Chairman Rep. Dave Camp (R-Mich.) could not only push forward a more fair, pro-growth tax code but also shrink the government's role in the economy, Marron says.
The Senate Republicans balanced budget amendment contains a striking error, Marron writes.
The US House of Representatives will vote Wednesday on a debt limit bill that will suspend the debt limit through May 18. If they fail to pass a budget by April 15, Marron writes, the debt limit bill will withhold their pay.
Neither Treasury nor Federal Reserve believes its legal to use platinum coins to avoid debt-limit increase, Treasury spokesman says. With $1 trillion platinum coin out, administration ponders other debt-limit strategies.
A $1 trillion coin could provide an answer to America's debt limit woes. Marron explores how the $1 trillion coin could work, and whether or not President Obama should take advantage of it.
Lloyd Shapely and Alvin Roth got a much-deserved Nobel prize for their work on designing markets, Marron writes.
Donald Marron offers his perspective on Mitt Romney's proposed $5 trillion tax cut.