Sources of Public Revenue that Make Nations Richer
18 Pages Posted: 16 Jun 2015
Date Written: June 2015
Among sources of public revenue that make nations richer, the most beneficial are charges for harms, such as pollution and congestion, and charges for the private benefits from public services. Increases in the money supply sufficient to keep price changes in line with expectations are also beneficial. Taxes on concentrations of wealth are beneficial if wealth inequality is considered harmful. Properly administered taxes on land do no harm and are beneficial when markets are imperfect. Among taxes that cause harm, the combination of a tax on labour income and a tax on inheritances is probably the least damaging.
Keywords: public revenue, taxation
JEL Classification: H20, H21
Suggested Citation: Suggested Citation