Do you want your taxes smooth or spiky?

Cliffs, Discontinuities, Thresholds:

Don Marron illustrates that cliffs make  little sense for soda taxes here or at

Cliffs create problems for the income tax here

For marijuana grows, cliffs’ problems are discussed here or at Continue reading “Do you want your taxes smooth or spiky?”


Transfer pricing explained

Transfer pricing explained, by the Nicholas Confessore of the New York Times:

What Oesterlund [a wealthy individual hiding assets during a divorce] had done is known as “transfer pricing,” a practice that has come under growing criticism in recent years. Multinational corporations use it to shift their costs to high-tax countries and their profits to low-tax countries. Often, there is little or no economic reality to these transactions. Continue reading “Transfer pricing explained”