On the Taxation of Life Income
Progressive income tax systems penalize incomes that fluctuate from year to year. Legislation, both in the United States and in Canada, has provided for some relief through limited averaging provisions. This paper explores the properties of a tax system that bases its levy on the income earned over the taxpayers' entire life. The complications caused by errors in the outcome estimates, inflation, variations in interest rates, property income, capital market imperfections, and rate changes are discussed. Potential improvements through the successful implementation of a life income tax system include the equal treatment of equals, the possible inclusion of real capital gains in the tax base, and the neutral treatment of human and physical capital.
Year of publication: |
1975
|
---|---|
Authors: | Deutsch, Antal |
Published in: |
Public Finance Review. - Vol. 3.1975, 4, p. 299-319
|
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Comment: [The Economics of Confederation, Papers by Blackman and Frechette].
Deutsch, Antal, (1977)
-
Three Fiscal Irritants in Confederation
Deutsch, Antal, (1981)
-
FOREIGN TAX CREDITS AND THE INTERNATIONAL INTERDEPENDANCE OF CORPORATE TAX POLICIES
Jenkins, Glenn, (1974)
- More ...