Taxation of Households: A Comparative Study

Abstract:     
Some of us live alone, but most live in groups. Those of us who live in groups usually pool our income and expenses, somehow. This article surveys the enormous variety of ways in which countries deal with such group living arrangements, and children, in their income tax laws. The policy arguments for and against tax recognition of group living are considered. After weighing the various considerations, the article concludes that it is best not to recognize group living arrangements in the income tax laws. Individual taxation, though not always simple, is the simplest alternative. In addition, government policies toward children and population are best left out of the tax code.

Number of Pages in PDF File: 31

Accepted Paper Series