One of the arguments advanced in favour of a tax shift from income to consumptiontaxation is that, with tax evasion, such a shift would increase the tax paid by evaders.Given that evasion is concentrated in specific sectors, individuals operating in such sectors,who evade all or most of their...

This article reviews research on the taxation of electronic commerce, with a focus on sales taxes in the USA (where retailers are not always obligated to collect sales taxes for online sales). The literature has found evidence that sales taxes have large effects on buying behaviour online, which...

One of the main rationales for taxing consumption rather than income is that it is believed that consumption taxes discourage consumption, encourage savings, and thus generate higher economic growth. However, empirical evidence on the actual effectiveness of consumption taxes in stimulating...

This article proposes an extension of the influence of consumption taxation to demand by including the competition between products for the same available income. The assumption is that inelastic demand goods and services will obtain a larger share from available income than elastic demand ones....

This article investigates the effect of tax reform from the viewpoint of regime switching and finds that, following a tax-reform announcement with constant government spending, the key factor determining the adjustment patterns of consumption and capital is the relative extent of the...

Reformed taxation of capital gains could play an important role in a broader policy package to improve the simplicity, equity, and efficiency of the federal tax system. Constructive reforms for the United States would draw on Canadian provisions for taxing capital gains: a) eliminate the...

It is well known that consumption-tax systems have several advantages over existing income-tax systems, such as greater administrative simplicity and intertemporal neutrality. Despite these advantages, proposals to introduce consumption taxes have only had very limited success. This paper...