The “Departmental Trench:” A Cautionary Note from the Interdisciplinary Trenches

Written with Mary Hanneman

University departments – disciplinary ones in particular – have lately become targets of criticism, with some scholars claiming that “academic departments create more barriers than benefit.” Departments are said to divide people, curb innovative thinking and research, lead to over-specialization, and encourage rote coursework. Disciplines, some argue, “tend to focus only on a set of trees within a great forest,” and fail to integrate the range of skills students need for tackling real world problems. One IHE op-ed called departments “disciplinary trenches [that] hold us back.” Meanwhile, a movement for the creation of interdisciplinary departments grows.

As long-standing faculty members of a very large and non-departmentalized interdisciplinary school, a model many might be tempted to emulate, we question the functionality and benefit of large and wide-ranging academic units. In practice, these Continue reading

Why Washington’s capital gains tax should be upheld 

Published Jan 16, 2023 in Puget Sound Business Journal

On January 26, the Washington State Supreme Court will hear arguments about whether to uphold the state’s new 7% tax on stock profits larger than $250,000. Foremost, the Court should let the tax stand because it is constitutional. But the tax will also allow Washington’s small towns, especially those that are struggling, to see outsized benefits as it will help fund the new child care services that so many of our state’s rural communities desperately need.

As an economist, I’ve joined numerous rural leaders, including Pullman small business owner Nick Pitsilionis, in an amicus brief urging the State Supreme Court to help rural economies by upholding the tax. 

Nick Pitsilionis owns a restaurant where his employees sometimes miss their shifts, or bring their children to work, because they cannot find affordable child care. He does what he can to accommodate them, sometimes even allowing their children to sit in the restaurant’s office while their parents work. He says the lack of adequate child care in Pullman puts a strain on the rest of his crew, who must pick up the slack when an employee misses work because they lack good child care options. Continue reading

Economic and policy experts argue against repealing the capital gains tax

Washington state’s upside-down tax system, the most regressive in the nation, is back in the news. Last year the legislature took an important step toward balancing Washington’s tax code by passing a capital gains tax on the extraordinary profits extremely wealthy people make by trading stocks, bonds, and other lucrative assets. Forty-one states, including the other West Coast states, have a capital gains tax. And while capital gains taxes in general only impact high-income people who buy and sell assets, the tax in Washington is especially narrow and will be paid by only the wealthiest individuals in our state.

The 7% tax applies only to profits from the sale of stocks, bonds, and other non-retirement assets exceeding $250,000 a year. Real estate, retirement accounts, the sale of family-owned small businesses, timber and timberlands, livestock, and commercial fishing privileges would be exempt from the tax. Continue reading

The Working Families Tax Credit is an investment in Washington’s recovery

Published, Washington State Wire, April 5, 2021 (With Aaron Katz)

We all know the massive toll that COVID-19 pandemic and its economic fallout have taken on us all. But at long last, we are starting to see hopeful signs of better days ahead – increased vaccinations, restrictions lifted, and plans for kids to return to school. So now – right now – is when Washington state needs to invest in proven strategies that will ensure our state’s long-term health and economic recovery.

House Bill 1297, which funds an updated Working Families Tax Credit, is just that kind of proven strategy. It puts direct, flexible cash into the hands of those who need it most. In our respective fields of economics and public health, we know that this kind of direct cash is a powerful tool for getting our economy on track and improving the collective health and well-being of people in our state.

Modeled after the highly successful federal Earned Income Tax Credit (EITC), this policy would provide working families with an annual base credit of $500 to $950, depending on family size, with the credit phasing down as incomes rise. Because nearly a half-million Washington state families would qualify for the credit, it would reach one in four kids. This type of direct, flexible cash can be the lifeline that helps someone start a microbusiness, or allows them to pay for needed medical care or unexpected car repairs. Continue reading

It’s time for Olympia to impose new taxes on the rich

Published October 26, 2020 in Puget Sound Business Journal

The coronavirus is not just a health disaster, but an economic one as well.  There are, of course, the steep declines in income and consumption we are experiencing. But in addition, the economic tumble has translated into reduced state revenue and a gaping budget deficit.

Washington State’s budget problem is of course not unique.  All other states across the nation are equally challenged, and most are responding by cutting spending and shutting down programs.  Yet the case for finding new revenue sources instead has never been stronger. Especially here in Washington.

According to the most recent state forecast, Washington State’s current biennial budget is $2.4 billion below pre-Covid19 projections, an amount equaling about 5 percent of general state revenue. Meeting this shortfall with cuts only would be devastating.  

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Reacting to fear with hatred is a plague as old as pandemics themselves

With Turan Kayaoglu, Published May 31, 2020 in Tacoma’s News Tribune

Since Covid-19’s arrival, prejudice and fear may be spreading more rapidly than the virus itself.  As healthcare workers around the world bravely toil against Covid-19, we must pitch in to combat this disturbing side effect.

In the U.S., discriminatory practices in the face of this disease may be traced to President Trump’s regrettable labelling of Covid-19 as “The Chinese virus.’’ Nationwide, Asians are reporting surges in racist treatment. Just a few days ago the TNT (5/25) reported numerous incidences where Asian residents of Seattle were harassed, spit on, chased down and threatened, with a man yelling “Chinese disease!” after them.

Such responses are not new: Unknown and unfamiliar diseases, especially deadly ones, often leave us searching for outsiders to blame.

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Washington state leaders must tax the way to a just society

With Cynthia Stewart, Published in Tacoma’s The News Tribune December 7, 2019

Few topics are less understood or more quickly put the public to sleep than tax policy. Yet especially in our state, it’s essential knowledge.

And not just because public oversight of government depends on it. If you care about redressing our nation’s racially biased past, it is necessary to recognize how tax policy furthers our regrettable history of disparate treatment for different races.

The inequalities in our state’s tax code are well known, and have gained us the ignoble designation of “the most unfair state and local tax system in the country.”

This medal of dishonor from the Institute of Taxation and Economic Policy is based on ITEP’s assessment of how fairly the tax burden is spread among residents in the 50 states. Washington ranks dead last.

The problem is that our state and local governments rely heavily on sales and excise taxes, which fall disproportionately on the poor. Meanwhile, Washington lacks the income or wealth taxes to rebalance the burden towards those with the means to carry it. Continue reading

Washington should invest in Child Savings Accounts to help bridge income gaps

Published March 5, 2019 in the Seattle Times

“The Fleecing of the Millennials.” This is the provocative headline of a recent opinion piece by a New York Times columnist. David Leonhardt convincingly makes the case that the income gap between younger and older generations has been widening.

There’s nothing alarming about an older generation having more income and wealth than a younger one, of course. But Leonhardt investigates trends in this gap over time. He found that, on average, today’s young adults between the ages of 25 and 34 earn the same now as they did nearly half a century ago. Meanwhile over this same time period, the income of those between 55 and 64 grew by a quarter; and it grew by 75 percent among the retired population.

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The outdated way we measure poverty hurts those in need

 

Published in the Seattle Times Dec. 3, 2017

This fall the U.S. Census Bureau brought good news when it informed us that the nation’s poverty rate had fallen from 13.2 to 12.7 percent.

But now more than ever, we should be suspicious of this news.

To calculate a poverty rate requires first setting the threshold income below which someone is poor. The U.S.’s threshold, three times the cost of a minimum food diet, is more than 60-years-old and was set when food was families’ most costly expense. No wonder a family of four today with $25,000 in income is not officially poor: Our threshold doesn’t match the reality facing low-income households.
Next comes the challenge of defining income. As conservatives point out, we underestimate income by omitting the value of many cash and noncash government benefits. This practice dates to a time long past when government expenditures on tax credits, food stamps and housing subsidies weren’t that significant.

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Yes to universal health care, and Switzerland

Published September 27, 2017 in The Hill

Linda Gorman, director of the Independence Institute’s Health Care Policy Center, recently argued on these pages for a repeal of ObamaCare. Gorman claims that the movement toward a more European-style health care system, such as Obamacare steers us toward, leads us in the wrong direction.  For support, she compares our health care system with Switzerland’s.

I’ll address that comparison toward the end of this article.  Before getting there, though, I want to engage Gorman’s broader argument, both because it draws for support on my research comparing health care financing in the US with other countries, and because it misses basic health care economics.

To tackle the essence of Gorman’s argument that Americans are better off with a health care system leaving some uninsured, let’s step back from the specifics of Switzerland’s health care system.  Let’s instead examine the “European (or Asian)” model of health care.  Continue reading