tag:blogger.com,1999:blog-2830084253401570472.post9127521191106924282..comments2024-03-28T09:22:36.967+13:00Comments on Offsetting Behaviour: Regressive free tuitionEric Cramptonhttp://www.blogger.com/profile/15831696523324469713noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2830084253401570472.post-76970648350063291172011-09-08T10:43:05.188+12:002011-09-08T10:43:05.188+12:00Aha, got it. That's the second link - where I ...Aha, got it. That's the second link - where I say "once you account for taxation, it doesn't look quite as regressive". Depends on your baseline definition. IF the baseline is that something is progressive where absolute spending is concentrated in lower income cohorts, then it's regressive. If the baseline is that something is progressive where lower income cohorts receive more in benefits than their tax share, then it's progressive. But there's just about no category of spending where that won't be true because so many low income people pay little to no tax.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-37172625956855038002011-09-08T03:57:48.018+12:002011-09-08T03:57:48.018+12:00If you go to the link from your post:
http://wort...If you go to the link from your post:<br /><br />http://worthwhile.typepad.com/worthwhile_canadian_initi/2007/03/why_free_tuitio.html<br /><br />, then use the figures below chart 5, you get rough ROI by dividing %students by %income.Rob Salmondnoreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-18262108549589477262011-09-07T16:28:34.869+12:002011-09-07T16:28:34.869+12:00I'm not seeing where you're getting return...I'm not seeing where you're getting return on investment figures.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-16122322762058301062011-09-07T13:46:10.154+12:002011-09-07T13:46:10.154+12:00I think the characterization of this as "regr...I think the characterization of this as "regressive" is way, way overblown. Here are the returns on taxation through this programme for the four quartiles, **assuming flat tax** (numbers from the link):<br /><br />Lowest quartile: $2.50<br />2nd quartile: $1.33<br />3rd quartile: $0.93<br />Highest quartile: $0.66<br /><br />Once you throw progressive taxation at the numbers, then the differential becomes larger still.<br /><br />Eric, given these figures, why is this in any sense "regressive?"Rob Salmondnoreply@blogger.com