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Economic Theory and Tax and Pension Policies *
Author(s) -
DIAMOND PETER
Publication year - 2011
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2011.00733.x
Subject(s) - pension , economics , public economics , tax policy , capital (architecture) , capital income , tax reform , income tax , labour economics , international taxation , finance , archaeology , history
Studying and advising about mandatory pension systems while also researching optimal tax theory, with particular attention to the taxation of capital income, brought attention to differences in both analyses and policies, while these two subjects intersect in the common practice of the tax‐favouring of retirement savings. I have long been concerned about the implicit methodology used by the profession in going from theoretical analyses to policy advice. In this essay, I touch on all four of these topics – pensions, capital income taxes, tax‐favoured retirement savings and methodology. I give particular attention to the pension systems in Australia and New Zealand.