tag:blogger.com,1999:blog-8537995.post8862134917597612470..comments2023-10-29T10:54:58.681-04:00Comments on Vox Baby: Len Burman Pokes a Finger in the Eye of the StimulusAndrewhttp://www.blogger.com/profile/13514024573333057559noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8537995.post-40108049424803747542008-01-25T12:42:00.000-05:002008-01-25T12:42:00.000-05:00Not to be paranoid or to think too highly of mysel...Not to be paranoid or to think too highly of myself, but I have to wonder if this Bloomberg columnist stole my stimulus idea of gift certificates (or "coupons" as she more appropriately terms them). Until today I had not seen anyone suggest it. And now it shows up after I post yesterday on a few popular economics blogs. Hmmmm. http://www.bloomberg.com/apps/news?pid=20601039&sid=aW43d2y5N2DA&referAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-47426412774132376412008-01-25T07:15:00.000-05:002008-01-25T07:15:00.000-05:00Investors with unrealized capital gains are sensit...Investors with unrealized capital gains are sensitive to the tax cost of realizing those gains. If the tax cuts expire, the tax rate goes back up. Len conjectures that investors will realize more before the tax rates go up. If he advances that date, then we get realizations and the potential for spending them sooner rather than later. This allows him to claim his plan is also "stimulus." <BRAndrewhttps://www.blogger.com/profile/13514024573333057559noreply@blogger.comtag:blogger.com,1999:blog-8537995.post-57478132419320512962008-01-24T22:55:00.000-05:002008-01-24T22:55:00.000-05:00I understand about the tax revenues. But doesn't t...I understand about the tax revenues. But doesn't the assumption that it would be good for people to sell more stock now-- and that they need encouragement in this regard-- look a little.... <I>odd</I> to you?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-38140983686327955262008-01-24T19:40:00.000-05:002008-01-24T19:40:00.000-05:00Andrew and all,I realize now my Question #1 above ...Andrew and all,<BR/><BR/>I realize now my Question #1 above was dumb. Guess I just wasn't thinking. Yes, it's stimulus by incremental short-term selling of shares leading to incremental short-term spending (revenues are another matter).<BR/><BR/>I'd still love any comment on my "gift certificate" idea.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-75335748270504529312008-01-24T13:13:00.000-05:002008-01-24T13:13:00.000-05:00Paul,The idea is to advance realizations that woul...Paul,<BR/><BR/>The idea is to advance realizations that would come in later years into the current year. Investors would be selling their winners early to avoid the rising tax rate in the next year. That frees up cash, some of which will be spent. Len would acknowledge that revenues in future years--from that particular tax on those particular gains--would fall. But why would he care? He's Andrewhttps://www.blogger.com/profile/13514024573333057559noreply@blogger.comtag:blogger.com,1999:blog-8537995.post-34334491831300799742008-01-24T12:21:00.000-05:002008-01-24T12:21:00.000-05:00Another drawback to my "gift certificate" idea tha...Another drawback to my "gift certificate" idea that occurs to me is that the processing delay (mainly on the fulfillment end) could inhibit and/or delay the multiplier effect, although that's just an assumption on my part, I have no idea of magnitude, and no idea of the extent to which that problem could be mitigated by streamlining/accelerating the fulfillment process. And of course, some Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-37601129861462853392008-01-24T05:37:00.000-05:002008-01-24T05:37:00.000-05:00If this guy's idea of stimulus is "everybody dumpi...If this guy's idea of stimulus is "everybody dumping their stocks" (I wouldn't have believed it if I hadn't seen it with my own eyes), seems to me we've already had about as much stimulus as we can stand.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-4187245042940772412008-01-23T19:11:00.000-05:002008-01-23T19:11:00.000-05:00Andrew,1) Wouldn't revenues from any premature rea...Andrew,<BR/><BR/>1) Wouldn't revenues from any premature realization of cap gains -- premature in the sense of being artificially accelerated by a tax hike in 2009 -- be received in April, 2010, probably long after the time we'd want stimulus to avoid/mitigate/shorten a recession?<BR/><BR/>2) I have (what I think is) a unique idea for a fiscal stimulus. Let me preface it by saying I lean toward Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-5939440190401948002008-01-23T14:46:00.000-05:002008-01-23T14:46:00.000-05:00If the politicians are insisting on trying to stim...If the politicians are insisting on trying to stimulate the economy, i would rather see them authorize $150 billion in immediate spending on infrastructure projects sitting on the shelves of states and cities-- or speeding up projects that are on hold or being stretched out. A much better way to try to stimulate the economy:<BR/><BR/>1) People with jobs but big ticket items, refinance, etc<BR/>2A Red Mind in a Blue Statehttps://www.blogger.com/profile/01423945703299761676noreply@blogger.com