Premium
THE ILLUSORY TAX BASE: WHY TAXES ON CAPITAL ARE COUNTERPRODUCTIVE
Author(s) -
BracewellMilnes Barry
Publication year - 2003
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00395
Subject(s) - economics , capital (architecture) , obstacle , tax deferral , perspective (graphical) , politics , market economy , tax reform , labour economics , economic policy , state income tax , political science , law , archaeology , artificial intelligence , computer science , gross income , history
Taxes on capital are economically and socially counterproductive. The economy and society would benefit from their abolition. The obstacle to their abolition is not financial or economic but a failure of political will. This article looks at taxes on capital from an economic perspective: how do they differ from other taxes, what costs do they impose on the economy, and what are the consequences of their abolition? And, even if they are a failure economically, can they be justified socially or politically?