Why an Expenditure Tax?

[...]any tax which would achieve the objectives of encouraging the public to save and check spending out of capital and realised capital gains would contribute in no small measure to this country's financial stability. Since capital constitutes a source of spending power, it is in his opinion i...

Full description

Saved in:
Bibliographic Details
Published in:Canadian tax journal 2002-01, Vol.50 (1), p.314-320
Main Author: Ilersic, A R
Format: Article
Language:English
Subjects:
Brochures
Capital gains
Economic impact
Expenditures
Income taxes
Joint products
Proposals
Surtax
Tax assessments
Taxable income
Taxation
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:[...]any tax which would achieve the objectives of encouraging the public to save and check spending out of capital and realised capital gains would contribute in no small measure to this country's financial stability. Since capital constitutes a source of spending power, it is in his opinion illogical to ignore it in formulating an equitable tax system. The conclusion which Mr. Kaldor draws from his argument and his views on capital lead him logically to advocate an expenditure tax. [...]he writes, "accruals from the various sources cannot be reduced to a common unit of spending power on any objective criteria. [...]each individual performs this operation for himself when, in the light of all his present circumstances and future prospects, he decides on the scale of his personal living expenses. [...]a tax based on actual spending rates each individual's spending capacity according to the yardstick which he applies to himself".
ISSN:0008-5111