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Diane Publishing Books
Implications of Some Alternatives to Capital Income Taxation: A Reprint from the “Economic Quarterly”
Kartik B. Athreya (au); Andrea L. Waddle (au)
Studies the long-run implications of a switch from current U.S. tax policy, which features taxes on labor income, capital income, & consumption, to several alternative systems. These alternatives are revenue-neutral switches to: (1) a national sales tax on consumption alone; (2) a pure labor income tax; (3) a combination of consumption taxes & capital income taxes; & (4) a combination of labor taxes & capital income taxes. Findings suggest that income risk is important to consider when contemplating alternatives to capital income taxes, & that tax reforms may be viewed rather differently by households that differ in wealth &/or current labor productivity. Charts & tables.
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