Economics
150
Public
Finance: Taxation
Spring
Term, 2007
Professor Roger Gordon
Department of Economics
Office:
Economics 316
Tel:
534-4848
Email:
rogordon@ucsd.edu
Web:
http://www.econ.ucsd.edu/~rogordon
Office hours: Wednesday 12:30 – 3:30
TA:
Yi Zhang
Email:
y9zhang@ucsd.edu
Office:
Economics 119
Office hours: Tuesday 10:00 - 11:00
Thursday 1:00 - 2:00
Extra hours to be
scheduled prior to exams, and on request
Course
Goals: The overall objective of this course is to
provide an overview of the existing national tax structure in the
Prerequisite: Economics 100, or permission of the instructor
Exams: There will be two in-class midterm exams, each counting for 25% of
the final grade. The dates are listed
below. The final exam will count for the
remaining 50% of the final grade.
Grading will be on a curve.
The midterms
can raise your numerical grade but cannot lower it: I will use the maximum of
your score on the final, your weighted score using in addition either midterm,
or your weighted score using in addition both midterms, to determine the final
ranking. There will be no make-up exams
for these midterms. If you cannot take
either or both midterm exams, then your final grade will be based on those
exams that you do take.
Gruber: Jonathan Gruber, Public Finance and Public Policy (either edition is OK) and
SB:
Joel Slemrod & Jon Bakija, Taxing
Ourselves (any edition)
Lectures: The lectures are an integral part of the course, and will go well
beyond the required readings.
April 3, 5: Overview of taxation, tax incidence
Gruber, ch. 18.1, 19
SB, ch. 2
April 10: Efficiency costs of taxes
Gruber, ch. 20.1
April 12: Equity considerations
Gruber ch.
18.3,18.6
SB, ch. 3
April 17: Trade-off
Gruber, ch. 20.2-3
April 19: Other considerations in tax policy
SB, ch. 4-5
Gruber, pp. 726-32. (pp. 691-5 in Edition 1)
April 24: Review and midterm exam
April 26: Personal income tax, overview
Gruber, ch. 18.2, 18.4
Burman, et al. "The
Expanding Reach of the Individual Alternative Minimum Tax," Journal
of Economic Perspectives, 2003, p. 173-86.
May 1, 3 Effects on labor supply (2 classes)
Gruber, ch. 21
May 8, 10 Effects on savings behavior and portfolio choice (2 classes)
Gruber, ch. 22.1-3, 23.1-2
Stiglitz, “The General Theory of Tax Avoidance,” National Tax Journal, 1985, pp. 325-37.
May 15 Deductible items
Gruber, ch. 18.5
Clotfelter, “The Impact of Tax Reform on Charitable Giving: A 1989 Perspective,” NBER Working Paper No. 3273.
Cogan et al. "Healthy, Wealthy, and
Wise," Wall Street Journal, May 4, 2004.
SB, pp. 185-96
Report of the President's Advisory Panel on Federal Tax Reform, "Policy Recommendations" , pp. 70-82.
May 17 Review and midterm exam
May 22, 24 Corporate income tax:
Gruber, ch. 24
May 29 Estate tax
Gruber, ch.
23.3
Burman et
al., Options
for Reforming the Estate Tax
May 31 Payroll taxes
Gruber 20.4
Feldstein and Samwick, “Social Security Rules and Marginal Tax Rates,” National Tax Journal, 1992, pp. 1-22.
June 5 Possible tax reforms
Gruber 25.3-4
SB, pp. 166-84, ch. 7
Gale, Flat Tax
Auerbach, "The Choice Between Income Taxes and Consumption Taxes: A Primer," pp. 1-18.
Report of the President's Advisory Panel on Federal Tax Reform, "Policy Recommendations"
June 7 Review session
June 12 Final exam, 11:30 - 2:30