 Generational incidence of savings taxation versus capital‐income taxationInternational Journal of Economic Theory, 2007, vol. 3, issue 2, 113-129 Abstract: This paper examines the incidence of capital taxation in a model in which the taxation of capital is clearly justifiable and using analytical techniques from the tax reform literature. The taxation of capital has long been a controversial issue, with much of the literature concluding that savings/capital‐income should not be taxed. Recently, however, Blackorby and Brett have shown in a model with several desirable features that it can be optimal to tax capital, and they provide a simple yet compelling argument in favor of both savings taxation and capital‐income taxation. We use the Blackorby–Brett model (i.e. a model in which the taxation of capital can be justified) to revisit the question of the incidence of capital taxation. We focus on the generational incidence of capital taxation; that is, the incidence on a young generation and an old generation. However, an interpretation in terms of the incidence on “capital” versus “labor” (as is traditional in the tax incidence literature) is also provided. Date: 2007 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:3:y:2007:i:2:p:113-129 Ordering information: This journal article can be ordered from Access Statistics for this article International Journal of Economic Theory is currently edited by Kazuo Nishimura and Makoto Yano More articles in International Journal of Economic Theory from The International Society for Economic Theory |
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