Response to Jeffrey Keefe’s review of “Assessing the Compensation of Public School Teachers.”

The following is a summary highlighting testimony by AEI Director of Economic Policy Studies Kevin Hassett to the Joint Economic Committee at a hearing entitled "How the Taxation of Capital Affects Growth and Employment."

Predictable future variation in returns does not reflect priced risk factors, but is related to trading costs.

Progress may not be observable in the earliest stages of democracy.

Neither the CBO nor the Treasury's assumptions--that capital bears 100 percent or that no one bears the tax--are valid. Both approaches fail to reflect recent empirical and theoretic research that finds workers bear a large portion of the burden of the CIT.

The predicted probability of starting a business is 25 percent higher in states with higher bankruptcy exemptions than their neighbors relative to states with lower exemptions than their neighbors.

An investigation of the long-run response to national differences in taxrates on labor income, payrolls, and consumption.

The authors of the November 2011 Heritage Foundation report “Assessing the Compensation of Public-School Teachers” respond to questions and concerns, in the process showing that certain critical accusations—such as undercounting teachers’ work hours or overestimating retirement benefits—are simply false.