Taxes

Bruce Bartlett interviewed by Ezra Klein on taxes here. The most frustrating thing for economists, is the truism of this statement:

One reason I've been more sympathetic to a carbon tax than other conservatives is that if you did it right it would be pretty close to a VAT. One of the objections a lot of us have to cap-and-trade is that it's too easily manipulated. It sounds good in theory, but once in the political meat-grinder, its failures become overwhelming.

How many times can we say that? Its a good idea in theory, but the political process will make a mess of it. When will demand our politicians take the time to understand a little economics?

Consumer Sentiment

The recent consumer sentiment figures were not good.

Its preliminary index of confidence for July fell to a reading of 64.6 from the final reading for June of 70.8.


July's preliminary reading was well below economists' median forecast for 70.5 and the first fall in the index since February.

In April I presented the results for the local consumer sentiment index: