White House tax plan doesn’t move past Econ 101
This week the White House Council of Economic Advisors argued for cutting the corporate tax as a way to raise wages. In other words, CEA touted helping capital as a way to help labor.
This is the kind of idea that is basic to an economist, but leaves laypersons befuddled. In fact there’s good cause for befuddlement. The Econ 101 argument that CEA is invoking stops well short of where CEA would like to carry it.