Overcoming The Fiscal Trilemma With Two Progressive Consumption Tax Supplements
This article recommends a tax reform strategy that can accomplish three objectives: (1) raise sufficient revenue to deal with long run budget challenges; (2) promote long run economic growth; (3) provide progressivity in the face of increasing inequality. The strategy for overcoming this fiscal trilemma is to retain (with modification) the personal income tax, the corporate income tax, and the payroll tax, and add two progressive consumption tax supplements: a value added tax made progressive by a refundable VAT credit on the 1040, and a progressive consumption surtax on the 1040.
|Date of creation:||2014|
|Contact details of provider:|| Postal: Purnell Hall, Newark, Delaware 19716|
Phone: (302) 831-2565
Fax: (302) 831-6968
Web page: http://lerner.udel.edu/departments/economics/department-economics/
More information through EDIRC
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.:
- Seidman Laurence, 2010. "Reducing Future Deficits While Stimulating Today's Economy," The Economists' Voice, De Gruyter, vol. 7(3), pages 1-5, August.
- Kenneth Lewis & Laurence Seidman, 1998. "The Impact of Converting to a Consumption Tax When Saving Propensities Vary: An Empirical Analysis," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 5(4), pages 499-503, October.
- Alan D. Viard & Robert Carroll, 2012. "Progressive Consumption Taxation," Books, American Enterprise Institute, number 10533, February.
- Saul D. Hoffman & Laurence S. Seidman, 2003. "Helping Working Families: The Earned Income Tax Credit," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number hwf.
- Charles E. McLure & George R. Zodrow, 2007.
"Consumption-Based Direct Taxes: A Guide Tour of the Amusement Park,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper0716, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Charles E. McLure, Jr. & George R. Zodrow, 2007. "Consumption-based Direct Taxes: A Guided Tour of the Amusement Park," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(2), pages 285-307, June.
- Seidman, Laurence S. & Lewis, Kenneth A., 1999. "The Consumption Tax and the Saving Elasticity," National Tax Journal, National Tax Association, vol. 52(1), pages 67-78, March.
- Saul D. Hoffman & Laurence S. Seidman, 1990. "The Earned Income Tax Credit," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number eitc.
- James Alm & Asmaa El-Ganainy, 2012.
"Value-added Taxation and Consumption,"
1203, Tulane University, Department of Economics.
- repec:aei:rpbook:33699 is not listed on IDEAS
- James R. Hines Jr., 2007.
"Taxing Consumption and Other Sins,"
Journal of Economic Perspectives,
American Economic Association, vol. 21(1), pages 49-68, Winter.
- repec:ntj:journl:v:52:y:1999:i:n._1:p:67-78 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:dlw:wpaper:14-04.. 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: (Saul Hoffman)
If references are entirely missing, you can add them using this form.