THE LIFETIME INCIDENCE OF CONSUMPTION SALES TAXES | Zendy

Roy D. Adams | Zendy; David J Walker | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

THE LIFETIME INCIDENCE OF CONSUMPTION SALES TAXES

Author(s) -

Roy D. Adams,

David J Walker

Publication year - 1977

Publication title -

national tax journal

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.43

H-Index - 57

eISSN - 1944-7477

pISSN - 0028-0283

DOI - 10.1086/ntj41862162

Subject(s) - download , consumption (sociology) , sales tax , economics , value added tax , tax incidence , public economics , tax reform , ad valorem tax , sociology , computer science , social science , operating system

Consumption sales taxes are regressive in terms of annual income, but the shortcomings of annual data motivate analysis of tax incidence over a longer time interval. Two widely read public finance textbooks contain mistakes regarding the^effect of different lifetime consumption profiles on consumption sales tax proportionality. This paper concludes that consumption sales taxes would be proportional in lifetime terms if all individuals eventually consumed their entire lifetime incomes. However, monetary gifts and bequests escape the tax and make horizontal inequities and lifetime non-proportionality likely. Augmenting the tax with equal-rate taxes on gifts and bequests would ensure lifetime proportionality among all individuals regardless of their lifetime consumption profiles, gift givings, and estates.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research