The Design of Capital Income Taxation: Reflections on the Mirrlees Review
Journal
Fiscal Studies
Type
journal article
Date Issued
2011-09
Author(s)
Abstract
This commentary reflects on the recommendations of the Mirrlees Review on tax reform with a special focus on capital income taxation. Regarding the alternatives of moving to a consumption based tax system, the commentary discusses the relative merits of choosing an ACE system (allowance for corporate equity) rather than a cash-flow tax on the company level. It reviews the arguments in favour of full elimination of tax on the normal return to savings at the personal level which contrasts with alternative tax reform proposals recommending a positive but low and flat tax rate on personal capital income. It also discusses how existing computational models would have to be extended for a meaningful quantification of the gains and costs of implementing a tax reform along the lines of the Mirrlees Review.
Language
English
Keywords
Fundamental tax reform
consumption based tax system.
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Wiley-Blackwell
Number
32
Start page
437
End page
452
Subject(s)
Eprints ID
160519
File(s)![Thumbnail Image]()
Loading...
open.access
Name
j.1475-5890.2011.00145.x
Size
80.43 KB
Format
HTML
Checksum (MD5)
285787edcf3d0c4571b7d83a10b5e359