President Obama has come under increasingly fierce criticism for the size of the federal budget deficit, as both Democratic and Republican politicians loudly proclaim that federal spending should be cut. This article explains why such anti-deficit fervor is misguided and simplistic, and why,...

One of the fundamental tenets of modern tax policy analysis is that we should be concerned with so-called economic efficiency. Along with equity and administrability, efficiency is widely held to be a desirable and important goal. Indeed, to some analysts, efficiency is the most important of...

There are bad deficits and there are good deficits. What makes a fiscal deficit good or bad depends on both the context in which the deficit is run and the reason that the deficit is rising. The belief that it is unquestionably foolish to adopt policies that directly or indirectly increase the...

Advocates of estate tax repeal often assert that family-run businesses and farms are broken up when heirs are unable to pay the estate tax. This claim has never been proven, but a recent Joint Economic Committee report claims to demonstrate that it is true. I assess the arguments and evidence...

This article responds to claims that law professors are engaged in scholarly pursuits that fail to serve important social functions. I argue that legal scholarship “matters” in important ways, and in particular that the legal academy has improved its service to society by embracing...

Congressional Republicans, starting in 2011, embarked upon an unprecedented strategy of budgetary brinkmanship, threatening not to increase the statutory debt ceiling by the amount necessary to accommodate their own taxing and spending decisions. Starting from the very beginning, Neil H....

Transactions at non-equilibrium prices are false trades. Under standard assumptions, markets without false trading produce Pareto-efficient outputs. This paper demonstrates graphically the complications created when false trades occur, showing that quantities produced deviate from...

[Note: Earlier versions of this article appeared on SSRN under the titles 'Should We Adopt William Vickrey's Cumulative Averaging Income Tax System? Progressivity and Simplicity in Tax Reform,' and 'Should We Tax Average Income? Vickrey, Equity, and Tax Design.' They have been superseded by this...

The Federal Reserve (“Fed”) is the central bank of the United States. Because of its power and importance in guiding the economy, the Fed's independence from direct political influence has made it a target of ideologically motivated attacks throughout its history, with an especially...

The current successor to a federal statute first enacted in 1917, and widely known as the “debt ceiling,” limits the face value of money that the United States may borrow. Congress has repeatedly raised the debt ceiling to authorize borrowing to fill the gap between revenue and spending, but...