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2261 andrew gelman stats-2014-03-23-Greg Mankiw’s utility function


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Introduction: From 2010 : Greg Mankiw writes (link from Tyler Cowen ): Without any taxes, accepting that editor’s assignment would have yielded my children an extra $10,000. With taxes, it yields only $1,000. In effect, once the entire tax system is taken into account, my family’s marginal tax rate is about 90 percent. Is it any wonder that I [Mankiw] turn down most of the money-making opportunities I am offered? By contrast, without the tax increases advocated by the Obama administration, the numbers would look quite different. I would face a lower income tax rate, a lower Medicare tax rate, and no deduction phaseout or estate tax. Taking that writing assignment would yield my kids about $2,000. I would have twice the incentive to keep working. First, the good news Obama’s tax rates are much lower than Mankiw had anticipated! According to the above quote, his marginal tax rate is currently 80% but threatens to rise to 90%. But, in October 2008, Mankiw calculated that Obama’s


Summary: the most important sentenses genereted by tfidf model

sentIndex sentText sentNum sentScore

1 In effect, once the entire tax system is taken into account, my family’s marginal tax rate is about 90 percent. [sent-3, score-1.208]

2 By contrast, without the tax increases advocated by the Obama administration, the numbers would look quite different. [sent-5, score-0.412]

3 I would face a lower income tax rate, a lower Medicare tax rate, and no deduction phaseout or estate tax. [sent-6, score-1.056]

4 Taking that writing assignment would yield my kids about $2,000. [sent-7, score-0.266]

5 First, the good news Obama’s tax rates are much lower than Mankiw had anticipated! [sent-9, score-0.509]

6 According to the above quote, his marginal tax rate is currently 80% but threatens to rise to 90%. [sent-10, score-0.866]

7 But, in October 2008, Mankiw calculated that Obama’s would tax his marginal dollar at 93%. [sent-11, score-0.668]

8 What we’re saying, then, is that Mankiw’s marginal tax rate is currently thirteen percentage points lower than he’d anticipated two years ago. [sent-12, score-1.044]

9 In fact, Mankiw’s stated current marginal tax rate of 80% is three points lower than the tax rate he expected to pay under a McCain administration! [sent-13, score-1.519]

10 And if the proposed new tax laws are introduced, Mankiw’s marginal tax rate of 90% is still three percentage points lower than he’d anticipated, back during the 2008 election campaign. [sent-14, score-1.341]

11 If the new tax plans are put into effect, Mankiw will still keep 43% more of his money than he was expecting to keep, only two years ago. [sent-17, score-0.655]

12 I think he’s writing the articles because he has views that he thinks are important and he wants to share them with the world. [sent-33, score-0.292]

13 In which case, the marginal tax rate doesn’t have anything to do with it. [sent-39, score-0.796]

14 And the likelihood will go up after President Obama puts his tax plan in place. [sent-42, score-0.412]

15 And here’s what I wrote at the time : To start with, it does sound like Mankiw’s kids are already well provided for, and, although I’m sure they’d disagree with me on this, it’s not clear that they would benefit from having more money in the bank when their parents are gone. [sent-45, score-0.36]

16 But, for that, the marginal tax rate is nothing close to 90% or even 80%. [sent-52, score-0.796]

17 But his division of waking hours into “working” or “playing with kids” is, I would guess, not very sensitive to the marginal tax rate. [sent-55, score-0.618]

18 Back to taxes In writing the above, I’m not trying to suggest that the tax rate be X% or Y% or Z%. [sent-56, score-0.757]

19 He can accept that he plays with his kids for non-monetary reasons; why is it so difficult to accept that he writes newspaper columns for nonmonetary reasons also? [sent-72, score-0.359]

20 I’m not saying he should not write more columns; I just think it’s a bit silly to analyze that decision based on his dollar compensation for them, given that this has got to be the most minor reason for writing them. [sent-73, score-0.315]


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Introduction: From 2010 : Greg Mankiw writes (link from Tyler Cowen ): Without any taxes, accepting that editor’s assignment would have yielded my children an extra $10,000. With taxes, it yields only $1,000. In effect, once the entire tax system is taken into account, my family’s marginal tax rate is about 90 percent. Is it any wonder that I [Mankiw] turn down most of the money-making opportunities I am offered? By contrast, without the tax increases advocated by the Obama administration, the numbers would look quite different. I would face a lower income tax rate, a lower Medicare tax rate, and no deduction phaseout or estate tax. Taking that writing assignment would yield my kids about $2,000. I would have twice the incentive to keep working. First, the good news Obama’s tax rates are much lower than Mankiw had anticipated! According to the above quote, his marginal tax rate is currently 80% but threatens to rise to 90%. But, in October 2008, Mankiw calculated that Obama’s

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