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Sources of Public Revenue that Make Nations Richer

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  • T. Nicolaus Tideman
  • Florenz Plassmann

Abstract

Among sources of public revenue that make nations richer, the most beneficial are charges for harms, such as pollution and congestion, and charges for the private benefits from public services. Increases in the money supply sufficient to keep price changes in line with expectations are also beneficial. Taxes on concentrations of wealth are beneficial if wealth inequality is considered harmful. Properly administered taxes on land do no harm and are beneficial when markets are imperfect. Among taxes that cause harm, the combination of a tax on labour income and a tax on inheritances is probably the least damaging.

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  • T. Nicolaus Tideman & Florenz Plassmann, 2015. "Sources of Public Revenue that Make Nations Richer," Economic Affairs, Wiley Blackwell, vol. 35(2), pages 197-214, June.
    • Handle: RePEc:bla:ecaffa:v:35:y:2015:i:2:p:197-214
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    File URL: http://hdl.handle.net/10.1111/ecaf.12116
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    References listed on IDEAS

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    Cited by:

    1. Zuluaga, Diego, 2016. "Why corporation tax should be scrapped: Bringing capital taxation into the 21st century," IEA Discussion Papers 74, Institute of Economic Affairs (IEA).

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