Re: generational accounting/kotlikoff/stevans

[ACSLKS@xxxxxxxxxxxxxxxx id <01HMT1EWINPC8Y6CZT@xxxxxxxxxxxxxxxx>; Wed, 08 Feb 1995 12:22:03 -0400 (EDT)]

> Lonnie: first, have rec'd your afdc paper; thanks much; I tried to
> send thanx thru personal email but it gets returnsed. Looks good, and
> I encourage all pkters to look at it.
>
> Second, sorry, don't remember the neoclassical terminology well; "dead
> weithght loss"? Well taxes can't burden the generation, as the
> interest is recd by the same generatin (eg that of 2020) In perhaps a
> more radical moment, I once advocated eliminating all taxes (see jplke
> perhaps summer 1993). That will resolve your concerns!!
>
> Randy Wray

Deadweight loss or excess burden is the difference between the loss in producer
surplus due to taxation and the gain in tax revenue.  As long as labor supply
is less than perfectly inelastic, a deadweight loss results.  This would be the
case for future generations as taxes are collected to pay interest.

Lonnie K. Stevans