exchange with pucker butt

"There's also the micro question of how costly it is to postpone/prepone government projects."
exactly why you don't alter discretionary spending you use the tax /borrow trad off and the transfer system

Posted by: paine


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Pain: "exactly why you don't alter discretionary spending you use the tax /borrow trad[e] off and the transfer system"
Maybe. But it may also be costly to postpone/prepone taxes and transfers.
Changing VAT (GST) rates temporarily (Stephen Gordon's favourite countercyclical fiscal policy) is the most plausible in my view. Because it has both an income effect and a substitution effect. (And the substitution effect would work even if Ricardian equivalence were correct).

Posted by: nick r

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vat is the answer ...exactly !!!!!

in any System with a vat

also health premiums
and retirement payments
here in the states no vat
gotta be payroll taxes employee side
and state sales taxes
-- with  resultant state deficits funded by uncle grants --

as to "costly "
we can look this debt /tax impact pathway
straight in the eye 24/7 365 year after year
and get it right
not as today here in the states
with a sudden mad dash to find
enough
uncle spending opportunities
to counter action such

Posted by: paine

the transfer system is faster cleaner less targeted more neutral and popularly prefered
posted by paine