Generalized Cash Flow Taxation / Alan A. Auerbach, David F. Bradford.

Format:

Book

Author/Creator:

Auerbach, Alan A.

Contributor:

National Bureau of Economic Research.

Bradford, David F.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8122.

NBER working paper series no. w8122

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2001.

Summary:

We show the unique form that must be taken by a tax system based entirely on realization accounting to implement a uniform capital income tax, or, equivalently, a uniform wealth tax. This system combines elements of an accrual based capital income tax and a traditional cash flow tax, having many of the attributes of the latter while still imposing a tax burden on marginal capital income. Like the traditional cash flow tax, this system may be integrated with a tax on labor income. We also show how such a tax can be supplemented with an optional accounting for a segregated subset of actively traded securities, subjected separately to mark-to-market taxation at the uniform capital income tax rate, to permit a fully graduated tax system applicable to labor income.

Notes:

Print version record

February 2001.