This paper will describe the current dynamic provision of cybersecurity and explain how a technocratic solution like the Cybersecurity Framework could weaken this process and ultimately undermine cybersecurity.
Regulatory impact analysis (RIA) is a tool regulators use to help guide them through the decision-making process when promulgating regulations. The goals of an RIA are simple and straightforward: to assess whether a problem exists that is systemic in nature and therefore requires intervention, to define the desired outcome sought through intervention, to describe the various alternatives that might address the problem and bring about the desired outcome, and to compare the benefits and costs of each alternative.
This paper discusses arguments for and against a securities transaction tax (STT) and evaluates the pros and cons based on a review of empirical evidence concerning the impact of STTs on equity and futures markets (i.e., trading volume, bid-ask spreads, and price volatility) and market efficiency in various countries. I find that an STT would likely reduce trading volume and increase trading cost, but may not reduce price volatility. The size of potential STT revenue depends on the STT’s impact on market activity. A sizable STT on futures and equity markets would not only fail to generate the expected tax revenue, it would also likely hurt the international competitiveness of US equity and futures markets.
Alternative presentations of the same budget data tend to offer very different impressions, creating opportunities for a deeper understanding of fiscal health. However, these measures sometimes reflect hidden assumptions about government finances, so even a seemingly neutral way of presenting data often isn’t so neutral. The ability to give different impressions with the same budget data creates the opportunity for policy mischief, as one can tell very different stories about fiscal policy depending on the measure used. We can assess the appropriateness of various spending adjustments by understanding the underlying assumptions in the measures, how to use the measures analytically, and how they might be used strategically. The paper looks at measures of government spending over time, as well as budget forecasts, to demonstrate this logic in practice. It concludes with a case study of President Obama’s fiscal year 2014 budget.
Quivering financial markets in a post-taper economy remind me once again to always follow the money when trying to predict where this world is headed. New Fed chair Janet Yellen spoke truth to power when she testified in February that the Fed had stopped watering the money tree and that US labor markets were a long way from normal.
The primer begins with a short discussion of criteria for evaluating tax revenue options (i.e., economic efficiency, equity, transparency, collectability, and revenue production). It proceeds to an overview of the different types of taxes employed at various levels of government and an evaluation of each tax
against these criteria. The tax categories included here are individual income taxes, consumption taxes, real property taxes, and corporate income taxes.
The United States faces severe fiscal challenges—most notably, the unsustainable growth of entitlement spending and a mounting debt burden that raises concerns about the government’s ability to pay it back without strangling economic growth. These threats reflect the inability of Congress and presidents to make the hard choices necessary to restore fiscal responsibility to the federal budget.
According to a new paper published by the Mercatus Center at George Mason University, the slowdown in health care cost growth is extremely unlikely to solve Medicare’s financing problems. Indeed, such a suggestion primarily reflects an incomplete understanding of how current Medicare cost projections are done.
Tuition and fees for higher education have increased at a rate much higher than inflation over the past 40 years. Although the amount students pay has risen much less than listed tuition, net price also continues to increase faster than inflation. Taxpayer funded subsidies to higher education have also increased substantially during this period. The Bennett hypothesis states that tuition will increase in response to subsidies. We review the variety of government programs subsidizing higher education
and summarize the existing evidence on the Bennett hypothesis. The evidence on the Bennett hypothesis remains mixed, providing some evidence that the effectiveness of the subsidies in increasing college enrollment is diminished to the degree that taxpayer moneys are diverted to the institutions of higher education.
Every country faces an intertemporal budget constraint, which requires that its government’s future expenditures, including servicing its outstanding official debt, be covered by its government’s future receipts when measured in present value. The present value difference between a country’s future expenditures and its future receipts is its fiscal gap. The US fiscal gap now stands at $205 trillion. This is 10.3 percent of the estimated present value of all future US GDP. The United States needs to raise taxes, cut spending, or engage in a combination of these policies by an amount equal to 10.3 percent of annual GDP to close its fiscal gap. Closing the gap via raising taxes would require an immediate and permanent 57 percent increase in all federal taxes. Closing the gap via spending cuts (apart from servicing official (debt) would require an immediate and permanent 37 percent reduction in spending. This grave picture of America’s fiscal position effectively constitutes a declaration of bankruptcy.
The regulatory process consists of many stages, but the essential first step is answering the question "what's the problem?" A thorough regulatory impact analysis should provide evidence that the regulation addresses a significant, systemic problem and trace that problem back to its root cause. A cursory or faulty analysis of the problem prevents regulators from devising an effective solution and considering realistic alternatives.