Change-over within little scope: On the decision neutrality of recent tax reform proposals
AbstractPolitical economy aspects make progressive income taxation and taxation of capital income imperative in practise. International tax competition and profit shifting, in turn, put pressure on corporate and capital taxes. Hence, the scope for a politically feasible change-over to a status of improved taxation is little. We provide an extended dynamic general equilibrium model and analyze politically feasible recent reform proposals referring neutrality. We then propose an alternative tax reform that, in contrast to these proposals, guarantees even growth neutrality, without necessarily jeopardizing political feasibility.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 27943.
Date of creation: 06 Jan 2011
Date of revision:
Dynamic general equilibrium models; taxation; tax reform; decision neutrality; ACE; dual income tax;
Find related papers by JEL classification:
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-01-16 (Accounting & Auditing)
- NEP-ALL-2011-01-16 (All new papers)
- NEP-DGE-2011-01-16 (Dynamic General Equilibrium)
- NEP-FDG-2011-01-16 (Financial Development & Growth)
- NEP-PBE-2011-01-16 (Public Economics)
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