 The Design of Capital Income Taxation: Reflections on the Mirrlees ReviewNo 1129, Economics Working Paper Series from University of St. Gallen, School of Economics and Political Science 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. Keywords: Fundamental tax reform; consumption based tax system (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:usg:econwp:2011:29 Access Statistics for this paper More papers in Economics Working Paper Series from University of St. Gallen, School of Economics and Political Science Contact information at EDIRC. |
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