TY  - JOUR
AU  - Kaplow,Louis
TI  - Capital Levies and Transition to a Consumption Tax
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12259
PY  - 2006
Y2  - May 2006
UR  - http://www.nber.org/papers/w12259
L1  - http://www.nber.org/papers/w12259.pdf
N1  - Author contact info:
Louis Kaplow
Harvard University
Hauser 322
Cambridge, MA  02138
Tel: 617/495-4101
Fax: 617/496-4880
E-Mail: meskridge@law.harvard.edu
M2  - featured in NBER digest on 2006-05-29
AB  - The merits of capital levies depend on the likelihood of repetition, the extent of anticipation, and its effects on distribution. The relevance of these features, which in varying degrees is underdeveloped or underappreciated in pertinent literatures, is elaborated and then considered with regard to the problem of transition to a consumption tax. Other transition issues are distinguished, and specific attention is devoted to rate changes under a consumption tax and whether owners of preexisting capital are effectively compensated through higher net-of-tax returns due to repeal of the income tax. The analysis is also related to literature that examines dynamic models of taxation, particularly work simulating consumption tax transitions and assessing the optimality of capital taxation in the long run.
ER  -