| 来源类型 | Working Paper
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| 规范类型 | 报告
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| DOI | 10.3386/w6465
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| 来源ID | Working Paper 6465
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| Transition to and Tax Rate Flexibility in a Cash-Flow Type Tax |
| David F. Bradford
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| 发表日期 | 1998-03-01
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| 出版年 | 1998
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| 语种 | 英语
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| 摘要 | The difficulty of making a transition from an income-type to a consumption-type tax is often cited as an obstacle to such a change in policy. The problem is the double taxation of 'old savings' or 'old capital.' A person who has accumulated wealth under an income tax will be hit with an extra tax on the consumption financed by that accumulation with a shift to a consumption tax. Such a transition effect raises issues of equity, political feasibility and efficiency. In the typical implementation of a consumption tax, the same sorts of transition phenomena associated with a shift from an income tax come from any change in the rate of tax. Introduction of a consumption tax is the same as raising the rate of consumption tax from zero to whatever positive rate is envisioned for the new system. Consequently, the problem of transition to a consumption tax generalizes to the problem of changing the rate of consumption tax. In this paper I consider the design of rules that render consumption taxes in the family of business cash-flow taxes immune to the incentive and incidence effects of changes in rate of tax. I show that two relatively simple approaches are available to deal with it: grandfathering the tax rate applicable to a given period's investment or substituting depreciation allowances for the usual expending of investment, coupled with a credit for the equivalent of interest on the undepreciated investment stock. A cost of this approach is its requirement to identify tru depreciation and, in the second case, the real rate of interest. |
| URL | https://www.nber.org/papers/w6465
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| 来源智库 | National Bureau of Economic Research (United States)
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| 引用统计 |
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/563982
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推荐引用方式
GB/T 7714 |
David F. Bradford. Transition to and Tax Rate Flexibility in a Cash-Flow Type Tax. 1998.
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文件名：
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w6465.pdf
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格式：
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Adobe PDF
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