Meta tags:
description= Musings on Economics, Finance, and Life;
Headings (most frequently used words):
the, donald, marron, tax, my, dad, should, money, posts, get, updates, by, 30, second, new, solution, for, taxing, cryptocurrency, staking, worst, jobs, day, ever, if, we, give, everybody, cash, let, it, economic, policy, in, time, of, covid, 19, brainteasers, from, remembering, 1934, 2019, congress, use, income, to, discourage, consumer, drug, ads, designing, carbon, dividends, three, things, you, know, about, buyback, furor, talking, inflation, fiat, bitcoin, pagination, twitter, rss, recent, economics, categories, archives, email,
Text of the page (most frequently used words):
the (178), and (83), for (52), tax (45), tokens (37), that (35), income (32), #should (30), are (30), they (29), but (28), have (22), donald (21), with (21), would (21), percent (21), their (20), staked (20), you (18), carbon (18), from (18), will (18), taxes (17), not (17), those (17), december (16), get (16), them (16), may (15), economic (15), use (15), dad (15), people (15), new (14), more (14), many (14), some (14), other (14), april (13), 2019 (13), can (13), dividends (13), time (13), could (13), payments (13), 2010 (12), february (12), 2011 (12), 2012 (12), 2013 (12), categories (12), staking (12), only (12), workers (12), march (11), year (11), here (11), deductions (11), unemployment (11), about (10), 2014 (10), money (10), how (10), jobs (10), posted (10), author (10), this (10), one (10), than (10), way (10), has (10), cost (10), transactions (10), august (9), january (9), policy (9), help (9), who (9), stakers (9), 2009 (8), september (8), october (8), life (8), economics (8), consumer (8), drug (8), cash (8), buybacks (8), tags (8), also (8), policymakers (8), first (8), marron (7), june (7), july (7), november (7), economy (7), business (7), three (7), taxing (7), our (7), financial (7), work (7), deduction (7), see (7), want (7), out (7), need (7), net (7), rewards (7), blockchain (7), validate (7), 2015 (6), 2018 (6), macroeconomics (6), health (6), finance (6), make (6), stock (6), know (6), congress (6), ads (6), covid (6), profits (6), two (6), companies (6), example (6), back (6), when (6), great (6), these (6), property (6), full (6), idea (6), businesses (6), his (6), credit (6), good (6), approach (6), same (6), recovery (6), 2017 (5), 2020 (5), energy (5), second (5), options (5), discourage (5), give (5), let (5), page (5), increase (5), tcja (5), revenues (5), americans (5), issues (5), revenue (5), thus (5), any (5), loss (5), productive (5), capacity (5), existing (5), approaches (5), like (5), million (5), service (5), amortization (5), franchise (5), intangible (5), post (4), 2016 (4), cryptocurrencies (4), pay (4), bitcoin (4), things (4), furor (4), designing (4), ever (4), next (4), much (4), both (4), third (4), states (4), made (4), part (4), debate (4), climate (4), right (4), just (4), was (4), households (4), still (4), advertising (4), costs (4), each (4), its (4), virus (4), sudden (4), quickly (4), take (4), steps (4), support (4), demand (4), now (4), fiscal (4), decline (4), another (4), programs (4), reduce (4), overall (4), there (4), allow (4), might (4), person (4), return (4), token (4), stake (4), comment (3), comments (3), com (3), select (3), home (3), environment (3), blog (3), trump (3), treat (3), inflation (3), fiat (3), buyback (3), remembering (3), 1934 (3), brainteasers (3), worst (3), day (3), solution (3), balance (3), simple (3), continue (3), reading (3), response (3), earnings (3), united (3), firms (3), system (3), boost (3), buy (3), today (3), record (3), changes (3), act (3), unfortunately (3), though (3), dividend (3), resources (3), while (3), report (3), cut (3), through (3), introduced (3), drugs (3), giving (3), end (3), often (3), sister (3), had (3), puzzle (3), basic (3), possible (3), does (3), little (3), days (3), losses (3), rebound (3), longer (3), once (3), activity (3), step (3), rate (3), expanding (3), soften (3), supply (3), what (3), president (3), small (3), proposed (3), federal (3), targeting (3), low (3), employers (3), safety (3), assistance (3), start (3), incomes (3), needed (3), social (3), all (3), measure (3), universal (3), times (3), temporary (3), did (3), payment (3), then (3), 000 (3), receive (3), add (3), urban (3), experienced (3), job (3), among (3), rose (3), don (3), ordinary (3), providers (3), section (3), 197 (3), capability (3), over (3), services (3), intangibles (3), rights (3), proof (3), assets (3), must (2), powered (2), wordpress (2), contact (2), writings (2), content (2), 2023 (2), uncategorized (2), regulation (2), politics (2), history (2), budget (2), research (2), replace (2), reform (2), talking (2), everybody (2), cryptocurrency (2), recent (2), posts (2), subscribe (2), updates (2), twitter (2), search (2), your (2), uncle (2), sam (2), starts (2), shareholders (2), cisco (2), reflects (2), repatriated (2), leaping (2), billion (2), reason (2), overseas (2), taxed (2), foreign (2), affiliates (2), domestic (2), parent (2), company (2), left (2), hold (2), securities (2), corporate (2), after (2), flow (2), main (2), driven (2), sparked (2), political (2), created (2), deal (2), sees (2), consumers (2), proposals (2), shared (2), share (2), details (2), complex (2), range (2), center (2), elaine (2), maag (2), emissions (2), regular (2), blow (2), reducing (2), course (2), purposes (2), progressive (2), ago (2), house (2), legislation (2), subsidy (2), bill (2), well (2), name (2), charitable (2), subsidizes (2), mortgage (2), interest (2), play (2), role (2), prescription (2), authority (2), between (2), senator (2), direct (2), favorite (2), fun (2), brought (2), york (2), city (2), got (2), usual (2), few (2), together (2), indeed (2), him (2), half (2), however (2), rare (2), won (2), remarkable (2), used (2), show (2), far (2), volume (2), 500 (2), pages (2), letter (2), eat (2), fast (2), were (2), challenge (2), priority (2), track (2), size (2), term (2), whether (2), enough (2), actions (2), threat (2), happens (2), provide (2), spending (2), aid (2), fed (2), target (2), treasury (2), recedes (2), larger (2), financing (2), better (2), say (2), healthy (2), lending (2), focused (2), loans (2), markets (2), doing (2), protect (2), recently (2), former (2), advisor (2), keep (2), australia (2), food (2), paid (2), families (2), coronavirus (2), millions (2), hours (2), inevitably (2), activities (2), distancing (2), gross (2), poses (2), severe (2), public (2), per (2), along (2), taxable (2), treated (2), eligibility (2), benefits (2), normal (2), bigger (2), create (2), based (2), under (2), ritz (2), clawback (2), even (2), institute (2), goal (2), level (2), across (2), years (2), simply (2), government (2), billionaire (2), california (2), everyone (2), later (2), universality (2), requirements (2), appeared (2), damage (2), employment (2), lost (2), since (2), unemployed (2), increased (2), shutdown (2), less (2), education (2), college (2), seen (2), spike (2), number (2), labor (2), force (2), traditional (2), crypto (2), depreciation (2), offer (2), newly (2), taxi (2), medallions (2), earn (2), validating (2), produce (2), goods (2), expenses (2), obvious (2), generate (2), musings (2), logged, loading, theme, twenty, sixteen, proudly, carries, creative, commons, license, dmarron, archives, technology, teaching, nature, microeconomics, measurement, internet, international, entrepreneurship, data, admin, behavioral, auctions, accounting, category, mexico, wall, outside, organizations, cbo, team, growth, hope, plan, pray, isn, eight, thoughts, employee, reader, rss, follow, email, pagination, https, app, stitcher, splayer, 123218, 53701811, weekend, listening, pleasure, visit, podcast, chat, currencies, gold, sheet, reconsider, commentary, suggests, mechanically, prices, broader, trend, account, thirds, according, stronger, due, improved, before, lower, morgan, imposing, accumulated, freed, wherever, wanted, including, multinational, chance, says, repatriating, buying, big, liberation, around, trillion, old, avoid, reinvest, operations, institutions, couldn, slashing, shares, fueling, boosting, cuts, media, confusion, elevate, change, ideas, complementary, different, implications, rebate, ultimately, distinct, philosophic, views, animate, communal, alaskans, state, oil, atmospheric, premise, implementing, face, philosophical, practical, colleague, explore, funded, leadership, council, advocate, disclosure, senior, fellow, organization, design, robust, dioxide, gases, threatening, indirectly, raise, significant, distribute, softening, directed, hottest, diverse, mix, conservative, voices, backing, returning, form, environmental, groups, weeks, six, members, democrats, republicans, crafted, address, problem, allowing, deduct, personal, borrowing, limiting, blunt, arbitrary, approaching, legitimate, concern, important, debates, risks, misuse, overuse, medications, doctors, patients, limits, commercial, speech, host, overviews, jeanne, shaheen, score, democratic, cosponsors, code, prohibit, taking, taxpayer, subsidies, brain, teasers, inspiration, honor, bear, past, proved, blessing, disguise, jennifer, hung, office, grabbed, dinners, celebrated, birthdays, feel, fortunate, difficult, believe, gone, such, vigor, months, rocked, billy, joel, madison, square, garden, heard, sing, 80s, thrilled, sharpness, movin, memories, failures, unsuccessful, effort, hurdle, cello, during, game, chase, ejected, yankee, stadium, throwing, paper, airplanes, set, tennis, died, unexpectedly, last, friday, lived, generous, obituaries, taste, success, charity, arts, truly, self, man, wsj, nyt, bloomberg, perils, conclusions, tell, amusing, deeper, meaning, please, warmer, summer, england, walk, bring, lunch, imagine, dictionary, sitting, shelf, bookworm, wants, riddles, word, games, mentioned, eulogy, america, strides, strategy, embracing, necessary, fight, coming, shift, helping, survive, resulting, defending, initial, ultimate, scope, efforts, unknown, anyone, guess, effective, abates, lag, continued, arsenal, lowering, payroll, taken, cutting, purchases, bonds, backed, effectively, zero, fourth, rebounding, keeps, harder, question, large, private, managed, sheets, expect, spirited, where, draw, line, bad, bailouts, matter, constitutes, bailout, fundamentally, facing, stress, lack, natural, administration, nations, announced, similarly, kingdom, interruption, reserve, ensuring, smooth, functioning, adding, liquidity, ahead, risk, shouldn, destroy, otherwise, nonprofits, why, seeing, door, making, obama, bush, mitt, romney, payrolls, whichever, getting, unprecedented, greg, mankiw, jason, furman, passed, insurance, medicaid, supporting, sick, leave, miss, shock, fall, reduced, furloughs, layoffs, restaurants, bars, crater, embrace, combat, risky, stop, gatherings, product, wellbeing, especially, true, nation, focus, four, strategies, favor, easy, clearly, bang, buck, directing, likely, most, already, enacted, program, lines, described, determining, enacting, decidedly, efficacy, offset, figure, linked, 125, untaxed, proposal, aggressive, ben, structuring, pre, clawing, designed, accomplish, distributional, phase, entirely, folks, earning, 150, possibility, link, amount, comparing, 370, 130, happily, combine, best, features, distributing, speed, inclusiveness, recapture, least, potential, deliver, biggest, benefit, dollar, spent, complexity, screen, simpler, recognizes, classic, originally, wire, down, path, assess, consider, policies, accelerate, permanently, date, rightly, wide, disaster, relief, keeping, financially, afloat, essential, eventual, living, levels, depression, bit, news, layoff, teenage, almost, older, hispanic, white, black, asian, women, men, walks, suffering, distributed, equally, downturns, highly, educated, fared, degree, high, school, graduates, addition, reporting, reasons, happened, particularly, sharp, usually, shrank, employed, lowest, records, began, 1948, figures, heart, wrenching, awful, fully, capture, hardships, counted, available, actively, seeking, schools, closed, opportunities, withering, norm, displaced, satisfy, instead, officially, having, marked, american, skyrocketed, greatest, brookings, taxvox, consistency, chart, middle, virtue, administrative, simplicity, neither, consistent, dominated, experts, recommend, receipt, knowledge, suggested, lummis, gillibrand, proponents, recommended, eventually, sold, senators, administratively, closely, option, looking, beyond, rough, justice, reflect, actual, technical, expands, prefer, depletion, suppose, increases, able, cause, gradually, become, without, unforeseen, improvement, market, conditions, stakes, obsolete, wonder, deserve, treatment, answer, yes, issuance, causes, depreciate, itself, validation, competition, reduces, compete, simplest, handle, list, irs, recognize, version, either, par, long, remain, retakes, control, clear, rules, types, taxpayers, amortize, original, equivalent, serve, branded, collect, cab, fares, medallion, opportunity, correctly, issued, reward, poorly, lose, penalty, incentives, encourage, operate, decentralized, network, securely, validates, mechanism, blockchains, ethereum, tezos, using, which, requires, fewer, electricity, owner, gives, gets, transforms, into, jargon, placed, nor, sell, exchange, collateral, exceptions, worthy, surprising, discuss, sort, asset, literally, currency, alternatively, depreciates, involved, running, computers, non, expense, type, therefore, qualify, place, ask, similar, benchmark, straightforward, compensation, incur, holders, pledge, process, intermediaries, banks, card, rewarded, additional, digital, puzzles, fact, senate, committee, advice, asked, menu, skip,
Text of the page (random words):
onal tokens a good place to start the puzzle is to ask how we tax similar economic activities that benchmark is straightforward stakers provide a service validating blockchain transactions in return for compensation more tokens if we want to treat them like other service providers we should tax them on their net income stakers should pay ordinary income taxes on the rewards they receive and get deductions for the expenses they incur staked tokens should generate tax deductions some expenses involved in staking e g the costs of running computers are obvious but there is also a non obvious expense cost recovery staked tokens are a type of intangible property used to generate income staked tokens should therefore qualify for the same amortization deductions other intangibles like franchise rights receive alternatively policymakers could create a new tax deduction that reflects how the economic capability of staked tokens depreciates over time the idea that staked tokens are intangible property worthy of tax deductions may be surprising people often discuss cryptocurrencies as though they are some sort of financial asset not literally a currency for tax purposes but still financial property with rare exceptions financial assets don t get amortization or depreciation deductions nor should they people buy and sell them exchange them for goods and services offer them as collateral for loans or simply hold them but they don t use them to produce any goods or services staking changes that the owner gives up their right to use tokens for financial transactions and in return gets to earn rewards by validating blockchain transactions staking thus transforms tokens into productive intangible assets in tax jargon tokens are placed in service to produce income bitcoin validates transactions with a proof of work mechanism but many other blockchains ethereum and tezos for example do it using proof of stake which requires fewer resources and less electricity the opportunity to validate transactions is shared across people based on how many tokens they stake when they validate transactions correctly stakers get newly issued tokens as a reward but if they validate transactions poorly they may lose some staked tokens as a penalty these incentives encourage stakers to operate the decentralized network securely staked tokens are thus the blockchain equivalent of franchise rights or taxi medallions if you want to serve branded fast food you need a franchise right if you want to collect cab fares in new york city you need a medallion and if you want to validate transactions on a proof of stake blockchain you need staked tokens we have clear rules for cost recovery for franchise rights taxi medallions and many other types of intangible property under section 197 taxpayers can amortize the original cost of those intangibles over 15 years the simplest way to handle staked tokens would be to treat them the same way congress could add staked tokens to the list of section 197 intangibles or the irs could recognize staked tokens as the blockchain version of a franchise right either way stakers would get amortization on par with other service providers who use intangible property but only as long as their tokens remain staked when a person retakes control of their tokens the deduction would end newly created tokens compete with existing tokens for staking rewards you might wonder whether staked tokens deserve this treatment does their productive capacity decline over time the answer is yes the issuance of new tokens causes staked tokens to depreciate each new token can itself be staked to offer validation services that competition reduces the economic capability of existing tokens suppose a blockchain increases its token supply by 5 percent each year tokens that could validate 10 percent of transactions this year might be able to validate only 9 5 percent next year and only 9 percent the year after and so on new staked tokens cause existing staked tokens to gradually become obsolete without some unforeseen improvement in market conditions a person who stakes the same number of tokens each year would see their revenue decline policymakers have the option of looking beyond the rough justice of section 197 amortization they could allow deductions that reflect the actual decline in staked tokens economic capability there are some technical details in how you measure this but the basic idea is simple if token supply expands 5 percent one year stakers could get a deduction of 5 percent of the cost of their tokens if policymakers prefer a depletion like approach the deduction could be 5 percent of their staking revenue these approaches would be more administratively complex than 15 year amortization but they would allow deductions to more closely track the depreciation experienced by staked tokens two other approaches have dominated public debate traditional tax experts recommend taxing staking rewards as ordinary income at receipt e g here and here but to my knowledge they have not suggested options for cost recovery senators lummis and gillibrand along with some crypto proponents e g here and here have recommended taxing staking rewards only when the tokens are eventually sold both approaches have the virtue of administrative simplicity but neither is consistent with the way we tax other service providers if consistency is a goal policymakers should chart a middle course stakers should be taxed on their net income not their gross income stakers should pay ordinary income tax on their staking rewards and they should get cost recovery deductions for the staked tokens that made those rewards possible this post first appeared on taxvox the blog of the urban brookings tax policy center author donald posted on august 1 2023 categories cryptocurrencies taxes tags cryptocurrencies taxes the worst jobs day ever driven by the covid 19 shutdown april marked the greatest job loss in american history the unemployment rate skyrocketed to 14 7 percent and employers cut 20 5 million jobs those figures are heart wrenching but as awful as they are they do not fully capture workers hardships to be counted as unemployed people must be available for work and actively seeking it with schools closed job opportunities withering and social distancing the new norm many displaced workers don t satisfy those requirements instead they officially show up as having left the labor force from february to april the labor force shrank by 8 million people add that to the more than 17 million increase in unemployment and 25 million americans are no longer employed more than 61 percent of americans had jobs in february in april only 51 percent did the lowest level since records began in 1948 in addition millions of americans still have jobs but have seen their hours cut from february to april the number of people reporting that they work part time for economic reasons rose by 6 6 million that spike happened even though part time workers have lost jobs at a particularly sharp rate unemployment among people who usually work part time rose from 3 7 percent in february to 24 5 percent in april while unemployment for full time workers rose from 3 5 percent to 12 9 percent americans from all walks of life are suffering in the great shutdown but the employment damage is not distributed equally as often happens in downturns highly educated workers have fared better than those with less education among workers with a college degree unemployment increased from 1 9 percent in february to 8 4 percent in april high school graduates with no college education however have seen unemployment spike from 3 6 percent to 17 3 percent teenage unemployment is now almost 32 percent far more than for older workers unemployment among hispanic workers has increased more than for white black and asian workers women experienced a larger increase than did men we are living through remarkable times the united states has not experienced unemployment at these levels since the great depression the one bit of good news is that many job losses may be temporary indeed a record 78 percent of unemployed workers report they are on temporary layoff unfortunately many jobs will be permanently lost to date policymakers have rightly focused on economy wide disaster relief keeping families and employers financially afloat is essential for an eventual recovery when we start down the path to recovery policymakers should assess how severe the longer term damage will be and consider policies that accelerate the return to full employment this post originally appeared on the urban institute s urban wire blog author donald posted on may 8 2020 categories economics macroeconomics tags jobs unemployment 1 comment on the worst jobs day ever if we give everybody cash let s tax it giving people cash is a great way to soften covid 19 s economic blow but it s sparked a classic debate should the federal government give money to everyone or target it to people with low incomes targeting has the potential to deliver the biggest benefit per dollar spent but eligibility requirements add complexity and will inevitably screen out some people who need help universality is simpler and recognizes that we are all in this together happily we can combine the best features of both approaches let s give cash to everyone and then tax it later by distributing money today we get the speed and inclusiveness of universality by taxing it later we can recapture some of the benefits from those who needed them least one approach is simply to tax the assistance just like any other income a person with little income this year would keep the full government payment of say 1 000 but a billionaire in california would net only 500 at tax time next year uncle sam would get 370 back and california would get 130 the billionaire would receive half as much as the person with little income and states with income taxes would get a much needed boost in revenues ben ritz of the progressive policy institute has proposed another approach structuring the money as a pre paid tax credit and then clawing back some of it at tax time the clawback system could be designed to accomplish any distributional and fiscal goal you want for example you might phase out the credit entirely for folks earning more than 150 000 another possibility would be to link the credit amount to some measure of income loss not just income level by comparing the income changes across tax years any of these approaches would reduce the fiscal cost of the cash payments and thus for the same overall cost allow them to be bigger for those who get them taxing the payments as income for example might create a 11 percent offset in new federal revenues that figure is based on a report elaine maag and i did on carbon dividends an idea for universal payments linked to a carbon tax a taxable payment of 1 125 would then have the about same net fiscal cost as an untaxed 1 000 payment under ritz s proposal a more aggressive clawback approach could allow even bigger payments for the same overall cost the payments described here should not be treated as income in determining eligibility and benefits in safety net programs they should be treated as income if we were enacting universal payments in normal times but times are decidedly not normal there is no reason for these temporary payments to reduce the efficacy of the existing safety net i favor targeting assistance to people with low incomes or sudden income loss if it s easy to do so there s clearly more bang per buck in directing aid to those who likely need it most australia has already enacted one program along those lines but if we go with universal payments let s make the payments taxable author donald posted on march 18 2020 categories macroeconomics taxes tags macroeconomics taxes economic policy in the time of covid 19 covid 19 poses a severe threat not only to public health but also to the overall us economy the nation s policy response should focus on four basic strategies first we should embrace those economic losses that protect health the steps needed to combat the coronavirus will inevitably reduce economic activity we want risky activities to stop social distancing is in gatherings are out reducing economic activity will reduce the overall size of the economy but we all know gross domestic product is not a measure of social wellbeing that s especially true today second we should help people get through this sudden financial shock millions of workers will see their incomes fall from reduced work hours furloughs and layoffs restaurants bars and many other small businesses will see their revenues crater expanding existing safety net programs as the house passed families first coronavirus response act does for unemployment insurance medicaid and food assistance is a good start so is supporting paid sick leave but those programs miss many people that s why we are seeing new proposals to get money out the door quickly making direct payments to households recently proposed by jason furman former economic advisor to president obama greg mankiw former advisor to president bush and now senator mitt romney r ut is one approach targeting payments to low income households as australia is doing is another giving money to employers who keep workers on their payrolls is a third whichever approach we take a priority is getting support out quickly to soften what may be an unprecedented loss in income third we should protect our economy s productive capacity so it can rebound once the virus risk recedes covid 19 shouldn t destroy otherwise healthy businesses and nonprofits the federal reserve will play a role by ensuring smooth functioning of credit markets adding liquidity to treasury markets as the fed is doing is a good step it may well take more steps in the days ahead but that won t be enough congress and president trump should help fundamentally healthy firms that are facing sudden cash flow stress and lack good financing options lending to small businesses is a natural first step trump has proposed expanding lending authority by the small business administration other nations have announced similarly focused programs the united kingdom for example has introduced new business interruption loans what to do for larger businesses is a harder question many large businesses do have private financing options or would if they had managed their balance sheets better expect spirited debate about where to draw the line between good and bad bailouts and for that matter about what constitutes a bailout i ll have more to say about that in another post fourth we should make full use of our economy s productive capacity once the virus recedes rebounding supply will help only if demand keeps up the fed has taken a first step to support demand by cutting its target interest rate to effectively zero and expanding its purchases of treasury bonds and mortgage backed securities those steps will so...
|
