Progressive Consumption Taxation by Carroll, Robert -- Read -- Imperial Library of Trantor

Index

List of Illustrations Acknowledgments Introduction 1 Why Tax Consumption?

Removing the Income Tax Penalty on Saving Gains from Reform Consumption-Tax Features in the Current Income Tax System Conclusion Box: The Trade-off Fallacy

2 The Case for the X Tax

The Retail Sales Tax and the Value-Added Tax The Two-Part VAT The X Tax: A Progressive Two-Part VAT Comparing the X Tax to the Personal Expenditures Tax Conclusion Box: Optics of the X Tax and the PET

3 Maintaining Progressivity

Tax Rate Schedule Assessing the Distributional Effects of the X Tax Conclusion Box: Zero Revenue from Taxation of Risky Returns

4 Fringe Benefits and Transfer Payments

Fringe Benefits Financing Social Security and Medicare Public and Private Transfer Payments Conclusion Box: Taxation of Gambling

5 Business Firms

General Issues Distinguishing Wages from Business Cash Flow Firms with Negative Business Cash Flows Conclusion

6 Financial Services

Neutral Tax Treatment The Problem of Mislabeled Transactions The Search for a Solution The R+F Cash-Flow Method Accounting Methods Special Cases Conclusion

7 International Transactions

The Border Adjustment Question The “Competitiveness” Illusion Giving Wealth Away without Really Trying Above-Normal Returns and Transfer Pricing Other Cross-Border Issues Conclusion Box: Border Adjustment with Fixed Exchange Rates

8 The Transition

Transition Burden on Existing Capital Normative Issues Outline of a Transition Policy Macroeconomic Policy During the Transition Conclusion

9 The Nonbusiness Sector

Owner-Occupied Housing and Consumer Durables Production by Governments, Nonprofits, and Households Patrolling the Boundaries of the Business Cash-Flow Tax Fiscal Federalism under the X Tax Conclusion Box: Taxation of Home Resales

10 The VAT Alternative

Subtraction and Credit-Invoice VATs The Superiority of the VAT to the Retail Sales Tax Recent Discussion of VAT Using the VAT to Replace Other Taxes The “Easy” Stuff Monetary Policy and Other Transition Issues Governments and Nonprofits Implications for Social Security Combating the “Money Machine” Conclusion

Conclusion Notes References About the Authors