NC State Economist Mike Walden – “The Supply Side Question”

Mary:  I’m Mary Walden with economist MW welcoming you to the economic perspective.  Today’s program looks at the supply-side question.   Mike, many of the presidential candidates are now releasing their tax plans.  What are some of the important questions we should ask about these plans?

Mike: Summary Answer

  1. At this point the plans will be general, but will give an idea of general suggestions
  2. One big question – what plan will do to the long-run fiscal position of the federal government
  3. Most experts see spending rising faster than revenues in coming decades – mainly due to increasing retirements
  4. Look at both revenue spending aspects of plans
  5. How will candidate change tax rates and what is taxed – and how will that affect revenues
  6. Assumptions about impact of tax plan on economic growth
  7. On spending side – plans for entitlements
  8. I’m MW

Mary:  And I’m Mary Walden for the North Carolina Cooperative Extension Service