David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Social Philosophy and Policy 23 (2):166-184 (2006)
The traditional view of tax holds that consumption taxes fail tax the yield to capital, whereas income taxes do, leading to John Stuart Mill's criticism of the income tax as a "double tax" on wealth that is saved. A better analytic understanding illustrates that there are two types of consumption taxes. A prepaid consumption or (equivalently) wage tax indeed ignores the yield to capital. But a consistent progressive postpaid consumption tax gets at such yield, at the individual level, when but only when the returns to capital are used to elevate lifestyles in material terms. Such a tax allows "ordinary" savings that move around labor earnings, in constant dollar terms, to different periods of an individual's life, such as times of retirement or heightened medical or educational needs. Because a progressive postpaid consumption tax falls on the yield to capital at the right time-when its use at the individual level becomes manifest-all other taxes on capital, such as capital gains, gift and estate, and corporate income taxes, can and should be repealed, in the name of fairness. Footnotesa I thank the editors, my research assistants Alex Baskin and Nina Kang, and the other contributors to this volume for their helpful comments.
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
Similar books and articles
Gillian Brock (2009). Reforming Our Taxation Arrangements to Promote Global Gender Justice. Philosophical Topics 37 (2):141-160.
Arvind Ashta, The EU Savings Directive (ESD): Taxation of Savings Income in the Form of Interest Payments (2003/48/EC, June 2003).
Juan Carlos Molero & Francesc Pujol (2012). Walking Inside the Potential Tax Evader's Mind: Tax Morale Does Matter. [REVIEW] Journal of Business Ethics 105 (2):151-162.
James D. Gwartney & Robert A. Lawson (2006). The Impact of Tax Policy on Economic Growth, Income Distribution, and Allocation of Taxes. Social Philosophy and Policy 23 (2):28-52.
Francois Maniquet, Help the Low Skilled or Let the Hardworking Thrive? A Study of Fairness in Optimal Income Taxation.
Gillian Brock (2008). Taxation and Global Justice: Closing the Gap Between Theory and Practice. Journal of Social Philosophy 39 (2):161–184.
Jonathan R. Macey (2006). Government as Investor: Tax Policy and the State. Social Philosophy and Policy 23 (2):255-286.
Donald R. Nichols & William F. Wempe (2010). Regressive Tax Rates and the Unethical Taxation of Salaried Income. Journal of Business Ethics 91 (4):553 - 566.
Added to index2009-01-28
Total downloads7 ( #212,321 of 1,679,369 )
Recent downloads (6 months)1 ( #182,933 of 1,679,369 )
How can I increase my downloads?