[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v42y1990i1p281-92.html
   My bibliography  Save this article

Consumption and Income Taxation

Author

Listed:
  • Browning, Martin
  • Burbidge, John
Abstract
The contemporary preoccupation with the optimality of consumption over income taxation dwells uneasily alongside the ambiguities in the older optimal tax literature. The recent literature has become mired in questions of optimal debt policy, to such an extent that one cannot adopt a position on tax reform, without simultaneoulsy taking a position on whether the U.S. economy saves too little or too much. We argue that the case for consumption taxation is not robust to modifications of assumptions in plausible directions. In particular, straigtforward modifications of the standard microeconomic life-cycle model to incorporate liquidity constraints and a human capital decision can make it optimal to supplement a consumption tax with an interest income tax. Copyright 1990 by Royal Economic Society.

Suggested Citation

  • Browning, Martin & Burbidge, John, 1990. "Consumption and Income Taxation," Oxford Economic Papers, Oxford University Press, vol. 42(1), pages 281-292, January.
  • Handle: RePEc:oup:oxecpp:v:42:y:1990:i:1:p:281-92
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0030-7653%28199001%292%3A42%3A1%3C281%3ACAIT%3E2.0.CO%3B2-6&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Blackorby, Charles & Brett, Craig, 2004. "Capital Taxation In A Simple Finite-Horizon Olg Model," The Warwick Economics Research Paper Series (TWERPS) 709, University of Warwick, Department of Economics.
    2. Craig Brett & John A. Weymark, 2019. "Optimal nonlinear taxation of income and savings without commitment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(1), pages 5-43, February.
    3. Sheng-Cheng Hu, 1996. "Myopia and Social Security Financing," Public Finance Review, , vol. 24(3), pages 319-348, July.
    4. Anagnostopoulos, Alexis & Li, Qian, 2013. "Consumption taxes and precautionary savings," Economics Letters, Elsevier, vol. 119(3), pages 238-242.
    5. Craig Brett & John A. Weymark, 2005. "Optimal Nonlinear Taxation of Income and Savings in a Two Class Economy," Vanderbilt University Department of Economics Working Papers 0525, Vanderbilt University Department of Economics.
    6. Krusell, Per & Quadrini, Vincenzo & Rios-Rull, Jose-Victor, 1996. "Are consumption taxes really better than income taxes?," Journal of Monetary Economics, Elsevier, vol. 37(3), pages 475-503, June.
    7. Shuanglin Lin, 1998. "Taxing Consumption in an Open Economy," Public Finance Review, , vol. 26(3), pages 250-269, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:42:y:1990:i:1:p:281-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.