A Comparison of Alternative Tax Bases
AbstractThe revenue, efficiency, equity and operating costs properties of alternative tax bases or taxable sums are compared and contrasted. Initially the assessment is made for generic, comprehensive tax bases on income and consumption flows, wealth stocks, and on transactions. On the criteria of efficiency and equity, there are unresolved conceptual and empirical arguments in choosing between income, consumption and wealth tax bases, but general revenue raising transaction taxes are inferior. In practice, including in current Australia, the different tax bases are far from comprehensive because of the many exemptions and deductions. On all good tax design criteria, the case is made to broaden the tax bases for income, the GST, payroll and land taxes; special purpose transaction taxes to counter market failures should be redesigned; and conveyance duties and other stamp duties should be removed.
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Bibliographic InfoPaper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2005n11.
Length: 19 pages
Date of creation: Aug 2005
Date of revision:
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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-09-11 (All new papers)
- NEP-PBE-2005-09-11 (Public Economics)
- NEP-PUB-2005-09-11 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Freebairn, 2002. "Opportunities to Reform State Taxes," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(4), pages 405-422.
- Bruce Headey & Gary Marks & Mark Wooden, 2005.
"The Structure and Distribution of Household Wealth in Australia,"
Australian Economic Review,
The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(2), pages 159-175, 06.
- Bruce Headey & Mark Wooden & Gary Marks, 2004. "The Structure and Distribution of Household Wealth in Australia," Melbourne Institute Working Paper Series wp2004n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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