California is suffering disproportionally in the current economic conditions.  Unemployment in California is currently (July) 12.3%, and where I am in the San Jose-Sunnyvale-Santa Clara metro area the July preliminary number is 11.5%.  Even at the peak of the tech bubble’s bursting, in June 2003 the metro area only registered a 9.2% unemployment rate.  In January of this year, Santa Clara County had a 12.1% unemployment rate and San Jose Metro had a 12.4% rate.  Graphically, here’s what it looks like:

Unemployment Rate: California, San Jose Metro, and National (BLS)

Yellow is the metro area, non-seasonally adjusted.  Red is California, Seasonally Adjusted.  Blue is national, Seasonally Adjusted.

• Last week, Cameron Daniel’s article Tax Incidence was featured in the Carnival of Personal Finance, hosted by Provident Planning.  Go check out Provident and the carnival!

Notable Posts

• “A Simple Trick to Get Your Credit Card Interest Charges Waived” – And Len means simple.  All you’ve got to do it usually pay your credit card bills on time.  Read it for more…
• “Trillion Dollar Public Pension Shortfall” – But what can you do?  It’s a gray area if states can even declare bankruptcy.
• “Why Americans Can’t Afford to Die” – What would a funeral cost you?  A slick (if morbid) infographic!
• “Covert Operations” – the political talk of the week, hosted by New Yorker.  You may as well polish up on your conspiracy theories, because this article is chock full.  Your thoughts on an article that’s been described alternatively as a hit piece and an exposé?  Leave them in the comments.
• My fantasy football team, ESPN Standard Scoring, 10 Team League.  (How did I do?)

1. QB: Peyton Manning, Chad Henne
2. RB: Maurice Jones-Drew, Ryan Grant, Knowshon Moreno, Donald Brown, Marshawn Lynch
3. WR: Hines Ward, Percy Harvin, Jeremy Maclin, Pierre Garcon, Robert Meachem
4. TE: Antonio Gates, Visanthe Shiancoe
5. D/ST: Packers
6. K: David Buehler (from the University of Southern California!  ESPN forced me to pick a kicker in the draft this year…)

When we think about the study of economics, we usually think of the mathematical models we were taught in high school and college. The entire corpus of economic studies has been founded on the notion of people as predictable, “rational” actors.

Neuroeconomics, a relatively new field that is acquiring more and more intellectual currency, closely studies human behavior and its influences, based largely on stunning advances made in neuroscience over the past few years.

In a recent Miller-McCune article, the latest research in the field was highlighted, demonstrating how the varying ability of humans to trust one another may be an influential factor in discovering how markets work, or fail to work.

Oxytocin in 3D (Wikipedia)

What is that makes one human being trust another? On the chemical level, neuroscientists have discovered the presence in our bodies of a hormone called oxytocin, which is released when we participate in various activities that require an element of trust, like having sex, petting animals, or giving birth to children. Paul Zak, a leading researcher in the field of neuroeconomics surmised that further study on how oxytocin operates in the body may offer an alternative explanation to the traditional “rational actor” model of economics.

In one experiment, Vernon Smith, a Nobel Prize winning behavioral economist developed a Trust Game to challenge the economic assumptions put forth in the Nash Equilibrium, which states that people will always act in their own self-interest. In the Trust Game, test subjects were given ten dollars and were given the option of choosing to share any part of their money with a complete stranger. The person receiving the gift was also given the option of returning part or all of the money given. This experiment both measured trust and trustworthiness. Nearly seventy-five percent of participants gave money to the stranger, and more than seventy-five percent reciprocated.

Zak took Smith’s trust game one step further by administering oxytocin to a group of test subjects while giving a control group a placebo. The outcome was remarkable–more than double the number of people who had inhaled oxytocin gave all of their money to the stranger as compared to those who had received a placebo.

While many traditional economists see little value in the recent findings on oxytocin and trust as it relates to market behavior, Zak sees a different story unfolding. While economic markets have for centuries been based on the idea of a dog-eat-dog, survival of the fittest world, Zak believes that these rather limiting categorizations do not accurately describe people and how they work.

In the article, Zak was quoted as saying, “What neuroeconomics does is put human beings back in the center of economics. I can go inside the brain and measure what’s happening.”

For more detailed information about oxytocin and neuroeconomics, read the full Miller-McCune article here

.

All numbers from the BLS, seasonally adjusted:

Unemployment Rate vs. Employment Ratio (BLS)

That dip at the end in both ratios?  People leaving the workforce.  Unemployment numbers can tell you one thing, but it’s harder to be fooled by the ratio of the country working.  Check out this Wikipedia article for more.

Tax incidence is the term used to describe who truly pays a tax. If a $50 tax is placed on a good- for instance, washing machines- the tax incidence attempts to measure who is paying the $50. It would be foolhardy to assume it all falls on the consumer. If Whirlpool could charge an extra $50 and not reduce demand, then they would already price their washing machines higher. The price after-tax usually falls somewhere in between $0 and $50 higher than the original price (ceteris paribus).

In this example, let’s consider that the price after tax raises $30. Demand will fall accordingly, and a large brunt of the incidence lies on those who still need to purchase washing machines. This would include renters who are furnished by their landowners (who could pass off the extra investment in higher rents). This could include higher prices for Laundromats, as well as any number of other unintended consequences.

With inelastic demand, the consumer pays. (Wikipedia)

On the supply side, however, Whirlpool still pays for the tax. Not only do they receive $20 less per washing machine sold ($50 tax taken out of the $30 price increase), they have reduced number demanded. They will be shifting their production schedules accordingly. Who could this affect? It could mean layoffs (possible), decreased shareholder equity (probable) and reduced demand for factors of production* (definitely). This means that the companies who are manufacturing the parts will see reduced demand. The tax incidence rifles its way through the entire line of production.

This example shows a bit how various forms of taxation are felt by different levels of the economy. But, how do price elasticities affect the incidence of the tax? If the demand is extremely inelastic (as argued previously on DQYDJ about cigarettes or medicine) the incidence will be felt mainly by the consumer. Consumers will not trade out of medicine for a lower alternative because it is a necessity. On the other hand, if goods with relatively elastic demands (think fruits or cars) is taxed, alternatives may be explored. An apple tax will increase the demand for oranges, and a tax on cars will increase use of bikes, motorcycles and public transportation.

With elastic demand, the incidence lies on the producer (Wikipedia)

Let’s take a real world example. A previous article by colleague Paul Kamp gave one argument for higher gas taxes. Gas prices are an inelastic good. Consumption changes in petroleum do not match the magnitude of the price changes. Due to this, we would expect the tax incidence to fall largely on the consumers. Contrarily, finished petrol price elasticities of supply are inelastic. A very fungible good such as gasoline means firms cannot price differentiate. Due to the decreased demand, the competitiveness of the gasoline market will keep the prices low. How do these two contrary effects balance each other?

Comparable elasticities split the incidence

This paper claims that the tax incidence falls almost fifty-fifty on the producers and consumers. As mentioned in our previous gasoline tax article, there are many benefits to increased gasoline taxation, because the expenditures benefit those where the incidence lies. In other words, if you do drive, you do not benefit from public roads as much as those who do drive. Because of this, the incidence should be on those who drive (the consumers in this example). Here is an example where the incidence is appropriately distributed.

Cheers,

Cameron Daniels

*Yes, layoffs are an example of reduced demand for factors of production

Some links for analysis on the price elasticity of crude oil or petroleum:

http://www.ftc.gov/reports/gasprices05/050705gaspricesrpt.pdf

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.141.6166&rep=rep1&type=pdf

The Mission: Introduce a friend who’s been living in a cave to rock and roll, three albums at a time.  Even he (she?) couldn’t help but be exposed to The Beatles and The Rolling Stones, so you can give him other material.  You have five care packages available, with spots for three albums each.  No greatest hits albums. Also, write your friend a letter telling him what you found hard to leave out and what you had no problem removing.

This article includes controversial opinions from Paul (PK) and Cameron (CD), and more than 2500 words.  Argue with this!

The Mission: Introduce a friend who’s been living in a cave to rock and roll, three albums at a time.  Even he couldn’t help but be exposed to The Beatles and The Rolling Stones, so you can give him other material.  You have five care packages available, with spots for three albums each.  No greatest hits albums. Also, write your friend a letter telling him what you found hard to leave out and what you had no problem removing.

Set 1:

PK:

Led Zeppelin IV, Led Zeppelin, 1971
37 million record sales has to mean something, especially when you take a look at the track list.  IV, also commonly referred to as “Zoso” for its mysterious (lack of a) title, is eight tracks without a weak one in the bunch, and includes classic rock staples “Black Dog”, “Rock and Roll”, and a little number called “Stairway to Heaven”.  Wow.
The Dark Side of the Moon, Pink Floyd, 1973
If someone didn’t have any rock albums at this point in time, it would be a crime not to include this in the first set.  Even though Dark Side takes a (hardcore fan) hit for not featuring the singing and songwriting of Syd Barret, the album is still quintessential Floyd, from the track “Time” to the classic humorous song, “Money”.  Definitely deserves an inclusion.
Ten, Pearl Jam, 1991
Although many will point to Vs. as a better example of Pearl Jam’s (nee Mookie Blaylock’s) artistic talents, Ten was the album that launched a thousand voices (possibly quite literally).  When Eddie Vedder brought his “golden baritone” to Pearl Jam’s hard-rocking debut, he helped put ‘grunge’ on the map with his Seattle neighbor Kurt Cobain from Nirvana.  “Once”, “Even Flow”, “Alive”… and that’s just the first three tracks!  Enjoy the grunge, buddy!

CD:

The Dark Side of the Moon, Pink Floyd, 1973
Easily Pink Floyd’s best album (although some still latch on to The Wall), this album can safely be regarded as one of the greatest albums of all time. To me, this would be the best album of the 1970s and spans the great depth of Pink Floyd’s appeal, from the melodic saxophone on “Us and Them” to the guitar solo of “Money” or the vocal solo in “The Great Gig in the Sky”.
Note: The entire song “Money” is written in 7/4 time signature. (Count the beats up to seven). They planned on having the guitar solo maintain the same rhythm, but David Gilmour could not get any of the timings correct; he was too used to playing in 4/4! So, as the drum roll that precedes the solo finishes, the song jumps to 4/4 so Gilmour can play his famous solo.
Born to Run, Bruce Springsteen, 1975
Bruce Springsteen’s breakout album had two charting singles: “Born to Run” and “Tenth-Avenue Freezeout”. But, it is in the album’s second half where it takes its place as one of the greatest in rock history. Top to bottom, the best album of Bruce Springsteen’s and Clarence Clemons’s careers. Again, a very solid album with saxophone.
Vs., Pearl Jam, 1993
Some would choose Pearl Jam’s debut Ten to be their greatest album, but the Seattle-based band set their act apart with their stellar follow-up. All six of the album’s singles charted top 40 on the Modern Rock chart (which surprisingly did not include one of their better known songs, “Rearview Mirror”). With over 950,000 albums sold in its opening week, Vs. held this record for over five years.

Set 2:

PK:

Hotel California, The Eagles, 1976
Even though the Dude of Big Lebowski fame hates them, the Eagles are a part of the American Music heritage.  This is their first album with (eventual solo success) Joe Walsh, and includes songs like “Life in the Fast Lane” and their most famous song, “Hotel California”.
Toys in the Attic, Aerosmith, 1975
Even though they were formed 3,000 miles or so from the Eagles, I had to stay in America for the second album of this set.  Aerosmith put out tons of good material, but they are best represented by Toys in the Attic.  I’ll listen to “Dream On” over “Sweet Emotion” any day, but “Walk this Way” gets this album extra points due to its later cover by rap group Run-D.M.C.
OK Computer, Radiohead, 1997
While some fans will be angry I picked OK Computer over Kid A, this reviewer is pretty handcuffed here…  Tell me, would “Everything in its Right Place” and “Idioteque” make sense if Radiohead had released them before OK Computer?  I’m going with no, so enjoy “Karma Police” and “Paranoid Android”!  Also, don’t hate me for putting Radiohead before R.E.M.  I owed England an album.

CD:

Led Zeppelin II, Led Zeppelin, 1969
Led Zeppelin’s hardest rocking-album could potentially be their greatest. What better way to introduce a newbie to hard rock than with the originals. This album featured some of their better know hits, such as “Heartbreaker” and “Whole Lotta’ Love”, but also displays some of their blues roots in “Bring it on Home”.
London Calling, The Clash, 1979
The single album that might have broken punk rock into the mainstream consciousness (for all their efforts, The Ramones might not have quite done it) would have to be London Calling. Almost every genre is touched upon in this album, and the cover art is homage to Elvis Presley’s debut album. Cool!
Blood Sugar Sex Magik, Red Hot Chili Peppers, 1991
Red Hot Chili Peppers had released four albums by this point, but still only managed to garner a regional name recognition. With this album, their blend of funk, rock and elements of rap broke into the mainstream. Most of their best-known earlier hits such as “Under the Bridge”, “Give it Away” and “Breaking the Girl” were on this album. One of the best longer albums as well (over 73 minutes is enough for a double album for some bands).

Set 3:

PK:

Automatic for the People, R.E.M., 1992
I suppose I telegraphed this pick, sorry about that!  I really wanted to make the argument for putting Document over People, but the only other R.E.M. album that can hang is Out of Time.  Find a weak track on Automatic; I dare you.  I can’t think of a better example of alternative rock than the album you are reading about now.  Standouts include “Drive”, “Man on the Moon”, and “Nightswimming”.
Who’s Next, The Who, 1971
An embarrassingly simple pick for what’s been a delightfully controversial topic so far.  As my esteemed colleague Cameron points out, all the biggest Who songs can be found on this record.  I don’t disagree: “Baba O’Riley”, “Behind Blue Eyes”, “Won’t Get Fooled Again”.  The Who is also my pick for the ‘band that needed to exist for grunge to happen’ award.  Sidebar: how many instruments do you think were smashed during the making of this album?
Electric Ladyland, Jimi Hendrix, 1968
At this point in my friend’s rock journey, it’s time to introduce the all-time best guitarist.  Ladyland is the last album Hendrix released with the Jimi Hendrix Experience and includes some great examples of guitar playing by the master.  “Voodoo Chile” is a must listen, and of course, the famous cover of Dylan’s “All Along the Watchtower”.  My apologies to Clapton and SRV, my guitar god is Hendrix.

CD:

Who’s Next?, The Who, 1971
The Who’s best album contains most of their better known songs, such as “Baba O’Riley”, “Bargain”, and “Behind Blue Eyes”. It also contains my favorite Who song “Going Mobile”. This album was the catalyst to establishing The Who as a dominant force in the British Invasion.
Rumours, Fleetwood Mac, 1977
It takes some bands a while to strike gold with their best work, and this was Fleetwood Mac’s 11th album. With “The Chain”, “Don’t Stop”, and “Go Your Own Way”, this album went on to sell over 40 million copies worldwide. Fun fact: “Go Your Own Way” was written by lead singer Lindsey Buckingham (male) about his breakup with the backup singer on the song, Stevie Nicks.
Automatic for the People, R.E.M., 1992
During the early 1990s, alternative and college rock was becoming more mainstream as grunge rock popularized many other unrelated bands. It could be argued that R.E.M. was one such band that capitalized on this opportunity. With their eighth and best studio album, Automatic for the People established R.E.M. as a band with national appeal. Some of their most popular songs are off of this album, including “Man on the Moon” and “Drive”. But, it is in some of their lesser known songs where they truly shine: “Nightswimming”, “Monty Got a Raw Deal” and “The River”.

Set 4:

PK:

Eat a Peach, The Allman Brothers Band, 1972
A tough pick.  I waited until set 4 to give my buddy southern rock, and I can feel some anger that I didn’t include Creedance…  However, this is the Allman Brothers best non-live album, and I got to sneak another double album into the care package!  Eat a Peach was the Allman Brother’s last album with Duane Allman, who died during its recording in a motorcycle accident.  “Mountain Jam” and “Melissa” are the standouts.
(What’s the Story) Morning Glory?, Oasis, 1995
I tried to put Blur in the Britpop spot, but I just couldn’t pull it off.  However, Morning Glory is hard to argue against (and a little boring of a pick!).  So, take “Wonderwall”, “Don’t Look Back in Anger”, and “Champagne Supernova” (and the other awesome tracks) and be happy with it!
The Stranger, Billy Joel, 1977
The Piano Man had to make my list in some form – rock and roll with a piano is always a nice twist.  Six weeks at number 2 also backs up the choice… and would you want to live in a world without “Movin’ Out”, “Just the Way You Are”, “Only the Good Die Young”, and “She’s Always a Woman”?  It’s a rhetorical question!

CD:

Boston, Boston, 1976
Boston’s debut album catapulted them into rock stardom. This album is generally regarded as their best (and perhaps only good) album, with the tracklist reading off like a greatest hits album: “Smokin’”, “More Than a Feeling”, “Peace of Mind”, “Foreplay/Long Time”. This album can safely be regarded as one of the defining albums of the 1970s.
Back in Black, AC/DC, 1980
Amongst AC/DC fans, this pick is somewhat controversial. The band’s lead singer Bon Scott died the previous year and they had considered breaking up, but then released their best-selling album with new lead man Brian Johnson. “Back in Black” and “Hell’s Bells” are some of their better known songs, but this album serves as a crash-course in Hard-Rock and an introduction to the subsequent heavy metal offshoot.
(What’s the Story) Morning Glory?, Oasis, 1995
The band and the album that catapulted Britpop into the mainstream is perhaps Oasis’s best known works. Highlighted by the title song, “Wonderwall” and “Champagne Supernova”, Oasis became an act that was imitated ad infinitum world wide.

Set 5:

PK:

Back in Black, AC/DC, 1980
Sorry I waited so long to give Australia some props!  Back in Black, now 20 years-young, is certified 22 times platinum and is the highest selling studio album made by a band (Michael Jackson can rest in peace.)  “Hells Bells”, “Back in Black”, “You Shook Me All Night Long” headline an album which has no filler.
Metallica (aka The Black Album), Metallica, 1991
I’m back in Southern California for this pick.  The Black Album happens to be Metallica’s Best Selling album and contains everything you’d like to hear from the band if you were just starting out as a rock listener.  “Enter Sandman”, “Sad But True”, and my favorite Metallica song, “Nothing Else Matters” all are pretty epic singles.
Born to Run, Bruce Springsteen, 1975
I’ve been saving this one as a closer for this list – and you’d have to be a fool not to include it in your own choices.  Would you seriously make an argument for Born in the U.S.A over this gem?  Try me.  “Born to Run”, “Tenth Avenue Freeze-Out”, and “Thunder Road” alone make this one of the best rock albums of all time.  If my buddy isn’t happy with this closer, maybe he is better off not even listening to rock?

CD:

Slowhand, Eric Clapton, 1977
I was considering putting Texas Flood by Stevie Ray Vaughan here instead, but felt it was more appropriate to get a representation of the British Blues movement. Obviously inspired from American blues artists from Chicago, Eric Clapton established his own style with his opus, Slowhand. Songs such as “Lay Down Sally” and “The Core” were powerhouse concert staples and his cover of J.J. Cale’s “Cocaine” remains one of his most popular songs.
The Stranger, Billy Joel, 1977
Before he moved into more pop-based stylings, Billy Joel was the king of popular piano.  The Stranger has a great many of his classics, including “Scenes from an Italian Restaurant”, “Just the Way You Are” and “She’s Always a Woman”. Joel is the third-best selling solo recording artist in the United States (Garth Brooks, Elvis Presley), and his best album is appropriately excellent.
Note: “Just the Way You Are” is a song describing how Billy Joel’s first wife was beautiful to him just the way she was, flaws and all. This was followed by an acrimonious divorce in the subsequent decade.
Kid A, Radiohead, 2000
Radiohead’s followup to their immensely popular OK Computer may have surpassed it. This album hit platinum within a week in the UK. It displayed Radiohead’s experimentation and talent in such wide genres as jazz, electronic and techno music.

Hard to Leave Out:

PK:

• Nevermind, Nirvana, 1991
• A Night at the Opera, Queen, 1975
• Thriller, Michael Jackson, 1982

CD:

• Abraxas, Santana, 1970
• What’s Going On, Marvin Gaye, 1971
• Eat a Peach, The Allman Brothers Band, 1972

Glad to Leave Out:

PK:

• Appetite for Destruction, Guns N’ Roses, 1987
• Blonde on Blonde, Bob Dylan, 1966
• The Velvet Underground and Nico, The Velvet Underground, 1967

CD:

• Pet Sounds, The Beach Boys, 1966
• The Joshua Tree, U2, 1987
• Blonde on Blonde, Bob Dylan, 1966

The results: A pretty solid 15-album playlist, although certainly a different list than “What are your 15 favorite albums?” or “What are the Top 15 Albums of All Time?”.    If this cave-dwelling friend shows any interest in something on this list, it’s easy to tailor a future care package around any album in the sets.  To boot, in a 15-album jukebox, either lineup would do pretty well by a wide variety of rock fans.  At some level, we would have liked to have been introduced to music in this order… Success!

What would you take out and replace?

For a complete view of revolving consumer debt, check out the Federal Reserve’s Historical Consumer Credit data here.  Graphically, it’s simple to see what happened with revolving credit:

Revolving Consumer Credit, By Month (Federal Reserve)

If you dig around on the National Center for Education Statistics NPSAS site, you might find something approximating this data from the student loan side, but Mark Kantrowitz of finaid.org and fastweb.com estimates a whopping $829.8 billion.  Time to turn up the number of stories on the student loans “crisis”?  Time will tell.  What do you think?

For your reference, here’s a graph (from Wikipedia) of the top marginal tax rate since 1913:

Top Marginal Tax Rate by Year (Wikipedia)

So… how about revenues over time?  I’ll have to write up a full post on it, but here’s the data, from the great Tax Policy Center.  Fun!

Perverse System?

The summary of the report gives some nice scare numbers: cash paying customers are spending $151 a year to subsidize

Should Cash Users Pay Less? (Lyza)

card-using customers, while card-using customers are getting a transfer of a whopping $1,482 from cash customers.  The report states that since credit card usage correlates nicely with household income, the credit card payment system unfairly rewards richer households at the expense of their poorer, cash-paying neighbors.  And all this right after Congress voted in the Credit CARD Act in 2009, which, as one of its perverse effects, decreased the availability of credit cards (in the case of adults under 21, it directly impacts their access to credit).

Of course, the authors of the paper decide that it may require an act of Congress to fix the system which Congress had no small part in creating.  Note that credit cards create more incentive to spend, at some level helping the economy by creating more willing consumers.  Also note that many gas stations charge a different price to cash and credit card payers.  In fact I haven’t seen a place which charged more for cash customers than credit customers.  Of course, the problem in this article is merchants which build credit card fees into everything they sell, thereby ‘subsidizing’ credit card users.

Is this entirely irrational?  Credit cards, as stated earlier, are a simple way to purchase goods and services.  The represent a level of convenience – no need to carry cash (risk of theft, loss), liability limits in the case of theft (in many cases, none!), the take up a smaller volume than a wad of bills and coins, the cause consumers to spend more (as the article linked above states), and, yes, they have a higher income user.  But these are just the benefits to the consumer – the merchant can process more transactions in an equivalent time, and the kicker, doesn’t have to leave cash on site when a credit card purchase is made.  Between theft, armored cars, bank trips, insurance, and in wall safes, cash isn’t ‘free’ to process.  In fact, talking about this topic with merchants in the past, these costs seem to go a decent way to eating up that 2.5 – 3.0% margin built into credit card purchases.

Why Else is this Study Silly?

Glancing over the comments in the Journal summary, one can tell the reactions to the report come with a roll of the eyes.  As many commentators point out, there are lots of services which cost some customers at the detriment of others.  People who ask questions, people who only shop at sales, people who use the bathrooms, people who loiter, people who try out many things and buy elsewhere, people who stay after the front doors have been locked, and all sorts of other customer types impose a cost on a store which gets shifted to efficient shoppers who buy at a regular price and don’t ask questions (and others who don’t do all of these things!).  Should the government start regulating people’s bathroom usage in stores as well?  Is this a reasonable usage of the Federal Reserve Bank of Boston’s time?  Sound off in the comments section!

What Plan Makes You Pay the Least? (My Tax Burden)

How Does it Affect You, PKamp3?

Funny, I thought you wouldn’t ask!  If the Bush tax cuts expire, my tax burden will increase by 11.83% in 2011 assuming I make the same amount.

The worst thing about  increasing taxes is even if one doesn’t get a raise (for example, because hiring remains weak) the amount they have to live on decreases from the previous year.  Even though you get the same salary, you’ll have to make do with less after-tax money (call it a federally-mandated pay cut!).

So yes, I prefer the cuts are extended.  However, if the cuts are extended for folks like me while taxes increase on the highest of the high earners, that isn’t automatically a good thing (who is going to create all the new jobs?).  In fact, the topic is likely to be the next big battle we see in Congress, with odd alliances consisting of people from all political stripes.

There’s nothing like a tax debate to inflame the passions of a nation, so let’s get this one going!  Tax debate in the comments!