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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Credit only where credit is due

By Megan McArdle
May 19 2008, 12:08 PM ET Comment

I agree that tax credits for school choice are not a very good idea. The regressivity is not a particularly big problem; you can simply make the credits refundable. But economically, there is no difference between a tax credit and government spending, except that tax credits are more complex and less transparent.

But it is different, you will insist; with a tax credit, you get to keep your own money, while with actual spending, the government takes your money. Yes, well, that is true for you, where you is someone who gets the tax credit. But unless we cut spending somewhere else, that is not true for me, where me is a childless single. Since the government is taking less of your money for other spending, it has to take more of my money to cover the shortfall. This is no different, either economically, or morally, from taking money from me to give to you in order to educate your children at the school of your choice.

Indeed, tax credits are worse than spending, because they're not transparent. Since they don't show up as flows in the federal budget, it is harder to keep track of what we are spending on them. Of course, for people who want the programs thus funded, this is a feature, not a bug. But as a general rule, it's best to stick to Megan's Third Law: We should never unnecessarily multiply the complexity of the tax code. It almost always costs you more in the long run. And if libertarians and conservatives really want to attack the scope of the state, the first step is insisting on transparency no matter whose ox gets gored.

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