Karl W. Smith

Former Bloomberg Opinion Columnist

Karl W. Smith is a Bloomberg Opinion columnist. Previously, he was vice president for federal policy at the Tax Foundation and assistant professor of economics at the University of North Carolina.

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Last Minute Tax Filers Rush To Send Out Returns

Bloomberg Opinion

The Trump Tax Cuts Were Neither Panacea Nor Rip-Off

The breaks are due to expire in 2025, making it an election-year issue. Whatever is decided, reversing the benefits given to businesses is the last thing lawmakers should do.

April 5, 2024

April 5, 2024

OpinionKarl W. Smith

The Trump Tax Cuts Were Neither Panacea Nor Rip-Off

The breaks are due to expire in 2025, making it an election-year issue. Whatever is decided, reversing the benefits given to businesses is the last thing lawmakers should do.

Last Minute Tax Filers Rush To Send Out Returns

March 29, 2024

March 29, 2024

OpinionKarl W. Smith

Raising Social Security’s Retirement Age Is the Least Bad Option

Facing a $150 billion shortfall this year alone, the program requires radical measures to shore it up or benefit cuts will be almost impossible to avoid.

Senior Recreation Center

March 22, 2024

March 22, 2024

OpinionKarl W. Smith

Giving Intel $20 Billion Exposes American Weakness

The funds provided under the Chips Act carry too many conditions tied to the Biden administration’s progressive agenda to be effective.

President Biden Speaks At Intel Ocotillo Campus

March 8, 2024

March 8, 2024

OpinionKarl W. Smith

The US Labor Market Is Starting to Look Vulnerable

Despite a big jump in payrolls for February, the underlying weakness can no longer be denied.

Jobs Openings In U.S. Falls To 2 Year Low, November Report Shows

March 7, 2024

March 7, 2024

OpinionKarl W. Smith

If Only Congress Would Focus on the Deficit That Matters

The metric that economists prefer suggests America’s fiscal health may be even better now than before the pandemic.

Operations At The Bureau Of Engraving And Printing As The $1 Bill Is Printed

February 27, 2024

February 27, 2024

OpinionKarl W. Smith

Shutdown Politics Only Enables Bad Economics

Threatening to close the government to achieve a one-time cut to discretionary spending is just feckless posturing. If the fiscal hawks really want to take a stand, they need to address entitlements and taxes.

President Biden Meets With Congressional Leaders At The White House

February 26, 2024

February 26, 2024

OpinionKarl W. Smith

The US Budget Office Is Frequently Wrong on Purpose

The bipartisan congressional agency always gets the outlook for interest rates wrong, suggesting America’s fiscal future isn’t as bleak as it wants you to believe.

COLOMBIA-ECONOMY-CURRENCY-DEVALUATION

February 13, 2024

February 13, 2024

OpinionKarl W. Smith

Trump's Tariffs Fall Short on the Metrics That Matter

The US trade deficit with China may have shrunk, but it has expanded with other countries where Chinese companies have a big presence.

File:The Best Of U.S. President Donald Trump

February 1, 2024

February 1, 2024

OpinionKarl W. Smith

Another Trade War With China Would Be a Fiscal Disaster

Higher tariffs would not only wreck the US economy and wreak havoc with global supply chains, they would also devastate the federal budget.

Donald Trump Campaigns In New Hampshire

January 29, 2024

January 29, 2024

OpinionKarl W. Smith

Guaranteed Income Plans Only Work in Studies — So Far

Too many experiments in paying struggling households a set stipend are too short. It’s time to move on to tests that last five to 10 years to really prove the concept works.

Lawmakers Trying To Avert Fiscal Cliff To Prevent Short-Term Shock To The Economy

January 17, 2024

January 17, 2024

OpinionKarl W. Smith

Expanding the Child Tax Credit Makes Economic Sense

Spending $100 billion over the next two years to bring 2.1 million children out of poverty and to grow the US economy by as much as $325 billion annually is an incredible deal.

US-HEALTH-VIRUS-EDUCATION-SCHOOL

January 9, 2024

January 9, 2024

OpinionKarl W. Smith

Fewer Products Signal Increased Corporate Efficiency

The pandemic forced many businesses to cut back on their offerings. For the economy’s sake, let’s hope they don’t bring many of them back.

A Safeway Grocery Store As Albertsons Releases Earns

December 22, 2023

December 22, 2023

OpinionKarl W. Smith

Fed Rate Cuts Must Come Sooner Rather Than Later

The labor market is rapidly weakening in ways that aren’t well appreciated, raising the risk of a recession if the central bank waits too long to ease monetary policy.

Fed Chair Jerome Powell Holds News Conference Following The Federal Open Market Committee Meeting

December 15, 2023

December 15, 2023

OpinionKarl W. Smith

Biden’s Manufacturing Revival Could Actually Happen

The administration has succeeded in increasing investment in factories, and now factory output looks set to improve as well.

TOPSHOT-US-ECONOMY-AUTO-MERCEDES

December 7, 2023

December 7, 2023

OpinionKarl W. Smith

Have the Fed’s Rate Increases Meant Nothing?

The economy’s resilience suggests monetary policy may be broken, having contributed very little — if anything — to the big slowdown in inflation.

US-ECONOMY-EMPLOYMENT-INDICATOR

November 27, 2023

November 27, 2023

OpinionKarl W. Smith

Biden's Trade War Over Steel Caps Protectionist Turn

The president once promised to undo Trump’s ill-considered isolationist policies. The latest spat with the EU shows he’s doing the opposite.

Last California Steel Mill Perseveres

November 15, 2023

November 15, 2023

OpinionKarl W. Smith

How America Can Get Its Debt Back Under Control

The US should be able to put its fiscal house in order without draconian tax hikes and painful spending cuts. The post-war years offer a roadmap.

F1 Grand Prix of United States

November 2, 2023

November 2, 2023

OpinionKarl W. Smith

American Workers Are the Economy’s True Unsung Heroes

Surging labor productivity is helping to offset stiff headwinds such as elevated inflation, rising interest rates and credit-card debt.

Last California Steel Mill Perseveres

October 27, 2023

October 27, 2023

OpinionKarl W. Smith

The US Needs More Housing. Americans Don’t Want to Build It.

More new supply would help stem the rise in home prices and rents, but builders can’t find enough workers for the record amount of residential construction that has been announced.

Homes Under Construction As Housing Starts Figures Released

October 23, 2023

October 23, 2023

OpinionKarl W. Smith

The US Is Doing a Terrible Job Collecting Taxes

Before Congress talks about spending cuts to shrink the $1.7 trillion budget deficit, it should figure out how to get its hands on the almost $700 billion it’s owed but hasn’t been paid.

Tax Preparers Work To Meet Tomorrow's Deadline