Taxes

Over the two decades prior to the onset of the global financial crisis, real disposable household incomes increased an average of 1.7% a year in the 34 countries represented by the Organisation for Economic Co-operation and Development. As this rise in earnings occurred, however, so too did a rise in income inequality — a pattern that raises questions about imbalances in growth around the world.

Few issues in American politics prompt more partisan passions and conflicting points of view than tax policy. One would think that there would be a definitive historical record of successes and failures that could inform future policy, but since other macro economic trends are operating at the same time, it can be difficult for economists to isolate the impact of tax cuts and hikes independent of these confounding factors.

The United States sees about 85,000 alcohol-related deaths a year, making pricing and regulation of the industry an important public health issue with broad consequences.

The impact to human life of alcohol consumption is well documented — in the United States an estimated 79,000 lives are lost annually due to excessive drinking. As terrible as the loss of life is, the full price that society pays is even greater — health care costs rise, property is damaged, productivity is lost, and more.

Social science research has focused extensively on rising income inequality and the consolidation of household wealth in the hands of the top 1% of U.S. households over the last 30 years. Recently, some policy makers have also been examining the causes and implications of this dynamic.

The 2010 U.S. Patient Protection and Affordable Care Act bears a number of similarities to the Massachusetts health care reform enacted four years earlier. Among them is a requirement that individuals buy insurance coverage or pay a fine, sometimes referred to as an “individual mandate.”

While increasing energy efficiency has considerable benefits, significant barriers exist. Efficiency potential is spread throughout millions of individual homes and businesses, requires upfront investments and shows returns only over time. This makes efficiency no one’s first priority.

Automotive transportation, one of the largest sectors of the U.S. economy, has numerous societal benefits but also many downsides — pollution, fatalities, congestion. Getting the price individuals pay for driving to reflect its true cost to society is one of the most significant challenges of public policy.