Economic Effects of A Personal Capital Income Tax Add-on to a Consumption Tax
The general idea is the following: any tax authority that respects basic human rights has to impose taxes on a base to avoid random and arbitrary taxation. The tax base should be announced prior to the imposition of the tax and therefore, taxpayers are given an advanced warning concerning the tax base. The advanced warning enables the taxpayers to adjust the tax base to the new circumstances so that they can adjust their behavior to the existence of the tax. This adjustment of the tax base by the taxpayer is responsible to the excess burden of the tax. Retroactive taxes, that is taxes imposed on tax bases determined in the past and that, therefore, cannot be changed by the taxpayers are considered as unethical. Although the determination of the tax base is just the first stage in the taxation process- tax liability is determined by applying a rate or a schedule of rates to the base- most of the complications that arise in taxation (and as a result are responsible for administrative and compliance costs) arise in the determination of the tax base.
|Date of creation:||01 Jun 2007|
|Date of revision:|
|Contact details of provider:|| Phone: 404-413-0235|
Web page: http://aysps.gsu.edu/isp/index.html
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.:
- Zodrow, George R, 1993. "Capital Income Taxation in Burundi," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 2(3), pages 348-80, December.
- Alan J. Auerbach & James R. Hines Jr., 2001.
"Taxation and Economic Efficiency,"
NBER Working Papers
8181, National Bureau of Economic Research, Inc.
- John W. Diamond & George R. Zodrow, 2007.
"Economic Effects of A Personal Capital Income Tax Add-on to a Consumption Tax,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper0715, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- John W. Diamond & George R. Zodrow, 2006. "Economic Effects of a Personal Capital Income Tax Add-On to a Consumption Tax," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0629, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Atkinson, A. B. & Stiglitz, J. E., 1976. "The design of tax structure: Direct versus indirect taxation," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 55-75.
- N/A, 2006. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 196(1), pages 10-35, April.
- Martin D. Dietz & Christian Keuschnigg, 2005.
"A Growth Oriented Dual Income Tax,"
CESifo Working Paper Series
1513, CESifo Group Munich.
- Harry Grubert & Rosanne Altshuler, 2007. "Corporate Taxes in the World Economy: Reforming the Taxation of Cross-Border Income," Departmental Working Papers 200626, Rutgers University, Department of Economics.
- Louis Kaplow, 2004.
"On the Undesirability of Commodity Taxation Even When Income Taxation is Not Optimal,"
NBER Working Papers
10407, National Bureau of Economic Research, Inc.
- Kaplow, Louis, 2006. "On the undesirability of commodity taxation even when income taxation is not optimal," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1235-1250, August.
- Zodrow,George R. & Mieszkowski,Peter (ed.), 2002. "United States Tax Reform in the 21st Century," Cambridge Books, Cambridge University Press, number 9780521803830, June.
- Robert E. Hall, 2004. "Measuring Factor Adjustment Costs," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 899-927.
- Michael Keen & John King, 2002. "The Croatian profit tax: an ACE in practice," Fiscal Studies, Institute for Fiscal Studies, vol. 23(3), pages 401-418, September.
- David Altig, 2001. "Simulating Fundamental Tax Reform in the United States," American Economic Review, American Economic Association, vol. 91(3), pages 574-595, June.
- Chamley, Christophe, 1986. "Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives," Econometrica, Econometric Society, vol. 54(3), pages 607-22, May.
- Auerbach, Alan J., 1979. "A brief note on a non-existent theorem about the optimality of uniform taxation," Economics Letters, Elsevier, vol. 3(1), pages 49-52.
- Carlos Garriga, 2001.
"Optimal Fiscal Policy in Overlapping Generations Models,"
Working Papers in Economics
66, Universitat de Barcelona. Espai de Recerca en Economia.
- Carlos Garriga-Calvet, 2000. "Optimal Fiscal Policy in Overlapping Generations Models," Econometric Society World Congress 2000 Contributed Papers 1772, Econometric Society.
- George R. Zodrow, 2007. "Should Capital Income be Subject to Consumption-Based Taxation?," Working Papers 0715, Oxford University Centre for Business Taxation.
- Erosa, Andres & Gervais, Martin, 2002.
"Optimal Taxation in Life-Cycle Economies,"
Journal of Economic Theory,
Elsevier, vol. 105(2), pages 338-369, August.
- Andrés Erosa & Martin Gervais, 1998. "Optimal Taxation in Life-Cycle Economies," UWO Department of Economics Working Papers 9812, University of Western Ontario, Department of Economics.
- Andres Erosa & Martin Gervais, 2000. "Optimal taxation in life-cycle economies," Working Paper 00-02, Federal Reserve Bank of Richmond.
- Richard K. Green & Patric H. Hendershott & Dennis R. Capozza, 1996. "Taxes, Mortgage Borrowing and House Prices," Wisconsin-Madison CULER working papers 96-06, University of Wisconsin Center for Urban Land Economic Research.
- Kenneth L. Judd, 1997. "The Optimal Tax Rate for Capital Income is Negative," NBER Working Papers 6004, National Bureau of Economic Research, Inc.
- Bernd Genser, 2006. "The Dual Income Tax: Implementation and Experience in European Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0625, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Chamley, Christophe, 2001. "Capital income taxation, wealth distribution and borrowing constraints," Journal of Public Economics, Elsevier, vol. 79(1), pages 55-69, January.
- Summers, Lawrence H, 1981. "Capital Taxation and Accumulation in a Life Cycle Growth Model," American Economic Review, American Economic Association, vol. 71(4), pages 533-44, September.
- Michael Devereux & Harold Freeman, 1991. "A general neutral profits tax," Fiscal Studies, Institute for Fiscal Studies, vol. 12(3), pages 1-15, August.
- Nielsen, Soren Bo & Sorensen, Peter Birch, 1997. "On the optimality of the Nordic system of dual income taxation," Journal of Public Economics, Elsevier, vol. 63(3), pages 311-329, February.
- Bruce, Donald & Holtz-Eakin, Douglas, 1999. "Fundamental Tax Reform and Residential Housing," Journal of Housing Economics, Elsevier, vol. 8(4), pages 249-271, December.
- Alan J. Auerbach & Laurence J. Kotlikoff & Jonathan Skinner, 1981.
"The Efficiency Gains from Dynamic Tax Reform,"
NBER Working Papers
0819, National Bureau of Economic Research, Inc.
- Auerbach, Alan J & Kotlikoff, Laurence J & Skinner, Jonathan, 1983. "The Efficiency Gains from Dynamic Tax Reform," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(1), pages 81-100, February.
- George Zodrow, 2006. "Capital Mobility and Source-Based Taxation of Capital Income in Small Open Economies," International Tax and Public Finance, Springer, vol. 13(2), pages 269-294, May.
When requesting a correction, please mention this item's handle: RePEc:ays:ispwps:paper0715. 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: (Paul Benson)
If references are entirely missing, you can add them using this form.