The most recent price tag for Biden’s student loan forgiveness plan is an estimated half-trillion dollars or more. Will higher inflation be another cost?

To access the full working paper, download the PDF on the left-hand sidebar. 

I. Overview

H.R. 5376, previously known…

The authors examine the impact of the transition to low-carbon energy on Texas K-12 education funding.

In this working paper, the author examines the economic effects of enacting a proposal by the Biden administration to tax long term capital gains at ordinary income tax rates for those with taxable income above $1 million and tax unrealized gains at the time of death for single (joint) filers with more than $1 million ($2 million) in unrealized gains. A similar version of the report was prepared with the financial support of the Center for Freedom and Prosperity Foundation.

In an extension of an earlier analysis prepared for the American Action Forum, the authors use the Diamond-Zodrow computable general equilibrium model of the U.S. economy to simulate the macroeconomic effects of a 10-year fiscal plan financed by tax changes proposed by Joe Biden’s 2020 presidential campaign.

In this background document, the authors provide some information on the choices of key parameter values used in the Diamond-Zodrow model. They focus on parameters involving labor supply, saving, international capital flows and substitution among factors of production.

As the Budget Control Act nears expiry, it is important to reflect on its effectiveness — does the BCA provide a framework for curtailing unsustainable deficits and moving to a sustainable fiscal policy?  Read the authors' analysis at the Baker Institute Blog.

Continued robust economic growth in the U.S. will, among many other things, require policies that encourage rapid technological innovation and increases in productivity, promote investment while reducing debt, and maximize economic efficiency. The authors explain why in this brief.

Our current economic situation is not permanent, and laws should not be altered based on the idea that domestic shutdown will last forever. However, we should remain flexible as our economy recovers.