Taxing Future Consumption
In: The State of Economics in Canada: Festschrift in Honour of David Slater
The Economic Council’s Road Map for Tax Reform laid the groundwork for a greater discussion of the consumption tax principle as a basis for taxation in Canada. In his paper, Jack M. Mintz continues this discussion by setting out the case for and against a consumption tax. He argues that the tax treatment of savings is likely to become a more central policy focus for the medium term. More practically, he cites three possible evolutionary changes that could lead to a greater reliance on consumption taxes: a sharp increase in sales tax revenues (sales and excise) to reduce reliance on income taxes; a major expansion of RRSP and pension limits to allow for greater accumulation of wealth to meet future contingencies of various sorts; and the introduction of an exempt-yield tax savings plan (with restrictions on contributed amounts) that would encourage saving by individuals expecting increases in future tax rates. More fundamentally, Mintz observes that the income tax could even be replaced with an expenditure tax system with continuing reliance on the other indirect forms of consumption taxation (sales taxes). Even though Mintz believes that the adoption of a consumption tax would certainly set Canada apart from other countries, including the United States, he holds that the technical issues, including implementation and transition issues, are not insurmountable if promoting future consumption is the key to Canada’s overall development.
|This chapter was published in: Patrick Grady & Andrew Sharpe (ed.) The State of Economics in Canada: Festschrift in Honour of David Slater, Centre for the Study of Living Standards, pages 79-94, 2001.|
|This item is provided by Centre for the Study of Living Standards in its series The State of Economics in Canada: Festschrift in Honour of David Slater with number 05.|
|Contact details of provider:|| Postal: 151 Slater Street, Suite 710, Ottawa, ON K1P 5H3|
Web page: http://www.csls.ca/
More information through EDIRC
|Order Information:|| Web: http://www.csls.ca Email: |
References listed on IDEAS
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.:
- Steven F. Venti & David A. Wise, 1990.
"Have IRAs Increased U. S. Saving?: Evidence from Consumer Expenditure Surveys,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 105(3), pages 661-698.
- Steven F. Venti & David A. Wise, 1987. "Have IRAs Increased U.S. Saving?: Evidence from Consumer Expenditure Surveys," NBER Working Papers 2217, National Bureau of Economic Research, Inc.
- Gale, W.G. & Scholz, J.K., 1990.
"Iras And Household Savings,"
9009, Wisconsin Madison - Social Systems.
- David Altig, 2001. "Simulating Fundamental Tax Reform in the United States," American Economic Review, American Economic Association, vol. 91(3), pages 574-595, June.
- B. Douglas Bernheim, 1999.
"Taxation and Saving,"
NBER Working Papers
7061, National Bureau of Economic Research, Inc.
- Lawrence H. Summers, 1988.
"Tax Policy and International Competitiveness,"
in: International Aspects of Fiscal Policies, pages 349-386
National Bureau of Economic Research, Inc.
- Feldstein, Martin S, 1978.
"The Welfare Cost of Capital Income Taxation,"
Journal of Political Economy,
University of Chicago Press, vol. 86(2), pages 29-51, April.
- John F. Helliwell & Ross McKitrick, 1999.
"Comparing Capital Mobility Across Provincial and National Borders,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 32(5), pages 1164-1173, November.
- John F. Helliwell & Ross McKitrick, 1998. "Comparing Capital Mobility Across Provincial and National Borders," NBER Working Papers 6624, National Bureau of Economic Research, Inc.
- Martin Feldstein & Charles Horioka, 1979.
"Domestic Savings and International Capital Flows,"
NBER Working Papers
0310, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & Fumio Hayashi & Laurence J. Kotlikoff, 1989.
"Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data,"
NBER Working Papers
3046, National Bureau of Economic Research, Inc.
- Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-1198, December.
When requesting a correction, please mention this item's handle: RePEc:sls:secfds:05. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CSLS)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.