Implementing Income and Consumption Taxes: An Essay in Honor of David Bradford

37 Pages Posted: 26 Jun 2006

See all articles by David A. Weisbach

David A. Weisbach

University of Chicago - Law School; Center for Robust Decisionmaking on Climate & Energy Policy (RDCEP)

Date Written: June 2006

Abstract

This essay explores the extent to which income and consumption taxes can be implemented using parallel designs. The economic differences in the two taxes is thought to be the taxation of pure time value returns under an income tax but not under a consumption tax. In theory, therefore, all differences in implementation methods should be traceable to the measurement of time value returns. To explore the extent to which this is true, the essay examines four major design elements of any tax system: (i) the use of cash flows or basis accounts to measure the base; (ii) remittance of the tax by firms or individuals; (iii) whether the system is open or closed; and (iv) how the system operates across borders.

Keywords: taxation, income taxation, consumption taxation, international taxation

Suggested Citation

Weisbach, David, Implementing Income and Consumption Taxes: An Essay in Honor of David Bradford (June 2006). U Chicago Law & Economics, Olin Working Paper No. 297. Available at SSRN: https://ssrn.com/abstract=911604 or http://dx.doi.org/10.2139/ssrn.911604

David Weisbach (Contact Author)

University of Chicago - Law School ( email )

1111 E. 60th St.
Chicago, IL 60637
United States
773-702-3342 (Phone)
773-702-0730 (Fax)

Center for Robust Decisionmaking on Climate & Energy Policy (RDCEP) ( email )

5735 S. Ellis Street
Chicago, IL 60637
United States

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