NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Generalized Cash Flow Taxation

Alan A. Auerbach, David F. Bradford

NBER Working Paper No. 8122
Issued in February 2001
NBER Program(s):   PE

We show the unique form that must be taken by a tax system based entirely on realization accounting to implement a uniform capital income tax, or, equivalently, a uniform wealth tax. This system combines elements of an accrual based capital income tax and a traditional cash flow tax, having many of the attributes of the latter while still imposing a tax burden on marginal capital income. Like the traditional cash flow tax, this system may be integrated with a tax on labor income. We also show how such a tax can be supplemented with an optional accounting for a segregated subset of actively traded securities, subjected separately to mark-to-market taxation at the uniform capital income tax rate, to permit a fully graduated tax system applicable to labor income.

download in pdf format
   (190 K)

email paper

This paper is available as PDF (190 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Auerbach, Alan J. and David F. Bradford. "Generalized Cash-Flow Taxation," Journal of Public Economics, 2004, v88(5,Apr), 957-980.

Users who downloaded this paper also downloaded these:
Bradford w9843 Addressing the Transfer-Pricing Problem in an Origin-Basis X Tax
Bradford w6465 Transition to and Tax Rate Flexibility in a Cash-Flow Type Tax
King w1993 The Cash Flow Corporate Income Tax
Bradford w10676 The X Tax in the World Economy
King The Cash Flow Corporate Income Tax
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us