Laurence Kotlikoff

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Laurence J. Kotlikoff
Born(1951-01-30) January 30, 1951 (age 61)
Nationality United States
InstitutionBoston University
FieldPublic Finance
Alma materHarvard University
University of Pennsylvania
InfluencesMartin Feldstein
AwardsFellow of the American Academy of Arts and Sciences, a William Warren Fairfield Professor at Boston University, Fellow of the Econometric Society
Information at IDEAS/RePEc
 
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Laurence J. Kotlikoff
Born(1951-01-30) January 30, 1951 (age 61)
Nationality United States
InstitutionBoston University
FieldPublic Finance
Alma materHarvard University
University of Pennsylvania
InfluencesMartin Feldstein
AwardsFellow of the American Academy of Arts and Sciences, a William Warren Fairfield Professor at Boston University, Fellow of the Econometric Society
Information at IDEAS/RePEc

Laurence Jacob Kotlikoff (born January 30, 1951) is a William Warren FairField Professor at Boston University, a Professor of Economics at Boston University, a Fellow of the American Academy of Arts and Sciences, a Research Associate of the National Bureau of Economic Research, a Fellow of the Econometric Society, a former Senior Economist, President’s Council of Economic Advisers, and President of Economic Security Planning, Inc., a company that markets ESPlanner - an economics-based personal financial planning software program, a simplified version of which is available on-line for free use by the public.

Kotlikoff ran for President of the United States in the 2012 election, and sought the nominations of the advocacy group Americans Elect[1] and the Reform Party of the United States before ending his campaign in May 2012.

Contents

Political ideas

Kotlikoff has written that the economic future is bleak for the United States without tax reform, health care reform, and Social Security reform in his book The Coming Generational Storm and other publications.[2]

Taxes

Kotlikoff has been a supporter of the FairTax proposal as a replacement for the federal tax code, contributing to research of plan's effects and the required rate for revenue neutrality.[3] In 2010, Kotlikoff offered his own tax proposal, titled the Purple Tax (a blend of red and blue), a consumption levy that he says cleans up some problems with the FairTax.[4][5]

His plan calls for a 15% final (17.5% nominal) sales tax. The FICA tax ceiling is gone and the 7.65% of the employees contribution is applied on everything after $40,000 but the employer pays 7.65% on the employees entire salary.[citation needed]

Financial reform

Kotlikoff's proposed reform of the financial system,[6][7][8] discussed in Jimmy Stewart Is Dead, called Limited Purpose Banking, transforms all financial companies with limited liability, including incorporated banks, insurance companies, financial exchanges, and hedge funds, into pass-through mutual funds, which do not borrow to invest in risky assets, but, instead, allows the public to directly choose what risks it wishes to bear by purchasing more or less risky mutual funds. Limited Purpose Banking keeps banks, insurance companies, hedge funds and other financial corporations from borrowing short and lending long and leaving the public to pick up the pieces when things go south. Instead, it forces financial intermediaries to limit their activities to their sole legitimate purpose—financial inter-mediation. Limited Purpose Banking substitutes the vast array of extant federal and state financial regulatory bodies with a single financial regulator called the Federal Financial Authority (FFA). The FFA would have a narrow purpose namely to verify, disclosure, and oversee the independent rating and custody off all securities purchased and sold by mutual funds.

Healthcare reform

Kotlikoff's 2007 book, The Healthcare Fix, proposed a system of vouchers somewhat similar to Paul Ryan's current plan. His proposal is that every American would receive a voucher that would have to be honored by insurance companies. The amount of the voucher would be adjusted for the costs to the insurance company of the person's coverage—i.e.sicker people would have their voucher amount increased. Kotlikoff has denounced critics of the plan such as economist Paul Krugman and President Obama for demagoguery over word voucher—arguing that the current health care law relies on vouchers. [9] He argues that the current Medicare program is unsustainable and that we have no choice but to embrace a plan with vouchers in this Business Week op-ed.

Third parties

Kotlikoff fervently dislikes both political parties and has called for a third party, which he hopes will save America.[10]

2012 presidential candidacy

In January 2012, Kotlikoff announced his plans to run as a third party candidate for President of the United States in 2012. Kotlikoff said he would seek the presidential nomination of the non-partisan advocacy group Americans Elect.[1][11][12] He announced in May that he would also seek the nomination of the Reform Party of the United States,[13] but ended the bid after the Americans Elect board decided to not field a 2012 presidential ticket.[14]

Publications

Notes

  1. ^ a b Gaylican, Christine (January 9, 2012). "Will an Economist Make a Difference as the next American President?". International Business Times. http://au.ibtimes.com/articles/278505/20120109/will-economist-make-difference-next-american-president.htm. Retrieved January 17, 2012. 
  2. ^ The Coming Generational Storm: What You Need to Know about America’s Economic Future
  3. ^ Kotlikoff, Laurence (2005-03-07). "The Case for the 'FairTax'" (PDF). The Wall Street Journal. http://people.bu.edu/kotlikoff/WSJ%20Op%20Ed%203-7-05.pdf. Retrieved 2006-07-23. 
  4. ^ Coy, Peter (2011-10-19). "Herman Cain’s Other Tax Plan". Bloomberg BusinessWeek. http://www.businessweek.com/magazine/herman-cains-other-tax-plan-10192011.html. Retrieved 2012-02-03. 
  5. ^ Kotlikoff, Laurence. "The Purple Tax Plan". http://thepurpletaxplan.org/. Retrieved 2012-02-03. 
  6. ^ Niall Ferguson and Laurence Kotlikoff (December 2, 2009). "How to take moral hazard out of banking". The Financial Times. http://www.ft.com/cms/s/0/34cd41e4-df77-11de-98ca-00144feab49a.html#ixzz1Vr0upfct. Retrieved 23 August 2011. 
  7. ^ Martin Wolf (April 27, 2010). "Why cautious reform is the risky option". The Financial Times. http://www.ft.com/intl/cms/s/0/cca02e40-522d-11df-8b09-00144feab49a.html#axzz1VkRrgCCl. Retrieved 23 August 2011. 
  8. ^ Laurence J. Kotlikoff (March 17, 2010). "Jimmy Stewart Is Dead". www.huffingtonpost.com. http://www.huffingtonpost.com/laurence-j-kotlikoff/jimmy-stewart-is-dead_b_502021.html. Retrieved 23 August 2011. 
  9. ^ Kotlikoff, Laurence (June 15, 2011). "‘Vouchercare' Is the Right Name for Medicare: Laurence Kotlikoff". Bloomberg. http://www.bloomberg.com/news/2011-06-15/-vouchercare-is-the-right-name-for-medicare-laurence-kotlikoff.html. 
  10. ^ Kotlikoff, Laurence (July 19, 2011). "A Third-Party Candidate Is Coming: Laurence Kotlikoff". Bloomberg. http://www.bloomberg.com/news/2011-07-20/why-a-third-party-candidate-is-coming-laurence-kotlikoff.html. 
  11. ^ Censky, Annalyn (January 5, 2012). "Econ professor to run for president". CNNMoney. http://money.cnn.com/2012/01/05/news/economy/laurence_kotlikoff_2012/. Retrieved January 17, 2012. 
  12. ^ Palmer, Kimberly (January 10, 2012). "Economist Laurence Kotlikoff Announces Presidential Bid". U.S. News & World Report. http://www.usnews.com/news/blogs/ballot-2012/2012/01/10/economist-laurence-kotlikoff-announces-presidential-bid. Retrieved January 17, 2012. 
  13. ^ "Kotlikoff to Seek Reform Party Presidential Nomination". Independent Political Report. May 11, 2012. http://www.independentpoliticalreport.com/2012/05/kotlikoff-and-others-decide-to-seek-reform-party-presidential-nomination/. Retrieved May 12, 2012. 
  14. ^ "Kotlikoff ends Reform Party presidential bid". Independent Political Report. June 5, 2012. http://www.independentpoliticalreport.com/2012/06/kotlikoff-ends-reform-party-presidential-bid/. Retrieved June 9, 2012. 

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