Limits And Problems Of Taxation (scandinavian Journal Of Economics)

Normative tax theory has concentrated on the distribution of tax shares to the neglect of the absolute level of taxation. The first Rawlsian principle of maximal equal liberty is introduced to derive limits on the absolute level oftaxation. The critical requirement is that the freedom of persons, singly or in coalitions, to form new political associations be counted as a relevant Iiberty in the Rawlsian array. Simple examples iIIustrate the argument, and critical parameters are identified and discussed briefly. Front Matter....Pages i-vi Editorial Introduction....Pages 1-3 The Ethical Limits of Taxation....Pages 4-16 Marginal Cost of Public Funds for Different Tax Instruments and Government Expenditures....Pages 17-32 Redistributional Aspects of Tax Evasion....Pages 33-51 The UK Tax System, Structure and Progressivity, 1948–1982....Pages 52-67 Income Taxation, Public Sector Pricing and Redistribution....Pages 68-85 Optimal Degree of Progressivity under Income Uncertainty....Pages 86-95 Majority-Rule Directions of Income Tax Reform and Second-Best Optimality....Pages 96-115 Inflation, Depreciation and the Neutrality of the Corporate Income Tax....Pages 116-130 Uncertainty, Welfare Cost and the “Adaptability” of U.S. Corporate Taxes....Pages 131-145 Do Tax Allowances Stimulate Investment?....Pages 146-170 The Wage Rate Tax—An Alternative to the Income Tax?....Pages 171-187 The Role and Design of the Corporate Income Tax....Pages 188-201 This volume brings together a number of new studies concerned with some of the topical problems of taxation. In Part I, limits of taxation are considered from the viewpoint of normative tax theory, its relation to the 'hidden' economy, and in terms of empirical estimates of the effects of taxes. Part II contains three theoretical studies which extend the theory of income taxation and redistribution. Part III deals with the corporate tax and contains both theoretical and empirical contributions. In conclusion, Part IV is devoted to two analyses of alternatives to income and corporate taxation. The authors represent a number of different countries and viewpoints.