Welfare and optimum dynamic taxation of consumption and income

• 成果类型: Article
• 署名作者: Coleman, WJ II
• 署名单位: Duke University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(99)00043-2
• 发表日期: 2000
• 页码: 1-39
• 关键词: Optimal taxation; consumption taxes; dynamic taxation; welfare

摘要

This paper estimates that the US could attain large welfare gains by implementing an optimal Ramsey tax policy that taxes consumption and income. It is also found that the welfare implications associated with taxing consumption are quantitatively more important than those associated with dynamically taxing income. Indeed, replacing income taxes with a constant consumption tax leads to a welfare gain that is only slightly lower than that attained by a dynamic policy that taxes consumption and income. In computing these welfare gains, careful attention is given to the dynamic path of tax rates and the transitional dynamics associated with how the economy responds to a new tax policy. (C) 2000 Elsevier Science S.A. All rights reserved.