Saturday, 3 September 2011

an interesting tax proposal;

Prof L.J. Kotlikoff presents an interesting tax reform plan;

What I think is interesting is effectively shifting the burden on taxation onto consumption, rather than profits and income.

There are several questions I think need to be answered that are more practical than political;
1) LJK suggests taxing imputed rent; I think that is very difficult to achieve.
2) What revenue would this raise theoretically? and what revenue would it raise after one calculated the effects of normal avoidance schemes?
3) It would be interesting to see how much of the savings from tax return filing would be eaten up in the calculation of implied value of rent consumed?

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