Generalized Cash Flow Taxation
We show the unique form that must be taken by a tax system based entirely on realization accounting to implement a uniform capital income tax, or, equivalently, a uniform wealth tax. This system combines elements of an accrual based capital income tax and a traditional cashflow tax, having many of the attributes of the latter while still imposing a tax burden on marginal capital income. Like the traditional cash-flow tax, this system may be integrated with a tax on labor income. We also show how such a tax can be supplemented with an optional accounting for a segregated subset of actively traded securities, subjected separately to mark-to-market taxation at the uniform capital income tax rate, to permit a fully graduated tax system applicable to labor income.
Year of publication: |
2001-05
|
---|---|
Authors: | Auerbach, Alan J. ; Bradford, David F. |
Institutions: | Griswold Center for Economic Policy Studies, Department of Economics |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Generalized Cash Flow Taxation
Auerbach, Alan J., (2001)
-
CARBON DIOXIDE SEQUESTRATION: WHEN AND HOWMUCH?
Keller, Klaus, (2003)
-
Improving on Kyoto: Greenhouse Gas Control as the Purchase of a Global Public Good
Bradford, David F., (2004)
- More ...