Timothy Fitzgerald, Kevin Hassett, Cody Kallan, and Casey B. Mulligan: An Analysis of Vice President Biden’s Economic Agenda: The Long Run Impacts of its Regulation, Taxes, and Spending (October 21, 2020)

Timothy Fitzgerald, Kevin Hassett, Cody Kallan, and Casey B. Mulligan, of Texas Tech University; Independent, University of Wisconsin – Madison, and University of Chicago; National Bureau of Economic Research (NBER), have made available for download their article, “An Analysis of Vice President Biden’s Economic Agenda: The Long Run Impacts of its Regulation, Taxes, and Spending,” published in University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2020-157. The abstract is as followed:

We estimate possible effects of Joe Biden’s tax and regulatory agenda. We find that transportation and electricity will require more inputs to produce the same outputs due to ambitious plans to further cut the nation’s carbon emissions, resulting in one or two percent less total factor productivity nationally. Second, we find that proposed changes to regulation as well as to the ACA increase labor wedges. Third, Biden’s agenda increases average marginal tax rates on capital income. Assuming that the supply of capital is elastic in the long run to its after-tax return and that the substitution effect of wages on labor supply is nontrivial, we conclude that, in the long run, Biden’s full agenda reduces full-time equivalent employment per person by about 3 percent, the capital stock per person by about 15 percent, real GDP per capita by more than 8 percent, and real consumption per household by about 7 percent.

To see the full article, click: “An Analysis of Vice President Biden’s Economic Agenda: The Long Run Impacts of its Regulation, Taxes, and Spending” by Timothy Fitzgerald, Kevin Hassett, Cody Kallan, and Casey B. Mulligan.

Posted by Bella Hoang, Managing Associate Editor, Wealth Strategies Journal.

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