Taxes, Spending, and Innovation

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See all articles by Michael Simkovic

Michael Simkovic

USC Gould School of Law; University of Southern California - Marshall School of Business

Date Written: February 15, 2019

Abstract

-Innovation is the product of teamwork.
-Engineers and scientists play a critical role.
-Scientific research is insufficiently rewarded financially.
-Taxes can boost innovation by funding human capital investment and basic research.
-The amount of investment is important – who owns financial assets is not.

In formulating taxation and public investment policies, we should carefully consider data and the peer reviewed literature. Claims that we can drive more innovation and growth through a higher concentration of resources in the hands of a small number of billionaires—while providing fewer resources to middle and upper middle-class knowledge workers—are not empirically supported.

See also:
Part I: Billionaire Taxes, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3326615
Part III: After paying ultra-high net worth wealth taxes, how much would billionaires have left to live on?, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3340925

Keywords: wealth tax, income tax, wages, tax wedge, capital gains, estate tax, inheritance tax, innovation, patents, human capital

JEL Classification: H2, H24, H22, H23, H25, H26

Suggested Citation

Simkovic, Michael, Taxes, Spending, and Innovation (February 15, 2019). Available at SSRN: https://ssrn.com/abstract=

Michael Simkovic (Contact Author)

USC Gould School of Law ( email )

699 Exposition Boulevard
Los Angeles, CA 90089
United States

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA 90089
United States

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