Consumption Taxes: Some Fundamental Transition Issues
A number of tax reform plans under discussion in the United States would replace the existing hybrid income-based system with a consumption-based system. In this paper I use uniform (single-rate) consumption and income taxes: (a) to explain how the problem of taxing "old savings" or "old capital" manifests itself in the shift from an income to a consumption base; (b) to indicate the tradeoffs that must be confronted in dealing with this phenomenon; (c) to show how price level changes that may or may not accompany a transition affect the distribution of gains and losses; (d) to sketch out how a transition might affect interest rates and asset prices (including owner-occupied housing); (e) to explore the case in equity for protecting the tax-free recovery of old savings; and (f) to enphasize the incentive problems that arise if savers and investors anticipate a change in the change in the tax rate in a consumption-based system.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark|
Phone: (+45) 3532 4411
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk/epru/
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.:
- David F. Bradford, 1991. "Market Value versus Financial Accounting Measures of National Saving," NBER Chapters, in: National Saving and Economic Performance, pages 15-48 National Bureau of Economic Research, Inc.
- Howitt, Peter & Sinn, Hans-Werner, 1989.
"Gradual Reforms of Capital Income Taxation,"
American Economic Review,
American Economic Association, vol. 79(1), pages 106-24, March.
- David F. Bradford, 1989.
"Market Value Vs. Financial Accounting Measures of National Saving,"
NBER Working Papers
2906, National Bureau of Economic Research, Inc.
- Bradford, D.F., 1989. "Market Value Us. Financial Accounting Measures Of National Saving," Papers 34, Princeton, Woodrow Wilson School - Discussion Paper.
- Alan J. Auerbach, 1986.
"Tax Reform and Adjustment Costs: The Impact on Investment and Market Value,"
NBER Working Papers
2103, National Bureau of Economic Research, Inc.
- Auerbach, Alan J, 1989. "Tax Reform and Adjustment Costs: The Impact on Investment and Market Value," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(4), pages 939-62, November.
- Cardarelli, Roberto & Sefton, James & Kotlikoff, Laurence J, 2000. "Generational Accounting in the UK," Economic Journal, Royal Economic Society, vol. 110(467), pages F547-74, November.
- Christian Keuschnigg, 1990.
"The Transition to a Cash Flow Income Tax,"
Discussion Paper Serie A
276, University of Bonn, Germany.
- Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1994. "Generational Accounting: A Meaningful Way to Evaluate Fiscal Policy," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 73-94, Winter.
- Alan J. Auerbach & Laurence J. Kotlikoff, 1981.
"National Savings, Economic Welfare, and the Structure of Taxation,"
NBER Working Papers
0729, National Bureau of Economic Research, Inc.
- Alan J. Auerbach & Laurence J. Kotlikoff, 1983. "National Savings, Economic Welfare, and the Structure of Taxation," NBER Chapters, in: Behavioral Simulation Methods in Tax Policy Analysis, pages 459-498 National Bureau of Economic Research, Inc.
- Alan J. Auerbach & Lawrence Kotlikoff, 1980. "National Savings, Economic Welfare, and the Structure of Taxation," Cowles Foundation Discussion Papers 570, Cowles Foundation for Research in Economics, Yale University.
- Browning, Edgar K, 1978. "The Burden of Taxation," Journal of Political Economy, University of Chicago Press, vol. 86(4), pages 649-71, August.
- Alan A. Tait, 1991. "Value-Added Tax; Administrative and Policy Issues," IMF Occasional Papers 88, International Monetary Fund.
- Roger H. Gordon, 1985. "Taxation of Corporate Capital Income: Tax Revenues Versus Tax Distortions," The Quarterly Journal of Economics, Oxford University Press, vol. 100(1), pages 1-27.
When requesting a correction, please mention this item's handle: RePEc:kud:epruwp:95-15. 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: (Thomas Hoffmann)
If references are entirely missing, you can add them using this form.