Efficient Taxation of Income

Efficient Taxation of Income

The Efficient Taxation of Income is an approach to taxation that would apply different tax rates for property-type income and earned income from work. Earned income would be taxed at a flat rate of 10%, while property-type income would be taxed at 30%. The plan was created by Dale Jorgenson, Samuel W. Morris University Professor at Harvard University, and Kun-Young Yun, Professor of Economics at Yonsei University, Korea. [cite web| title=Efficient Taxation of Income |url=http://www.economics.harvard.edu/faculty/jorgenson/papers/BURDEN_web.pdf |last=Jorgenson |first=Dale | coauthors=Yun, Kun-Young|publisher=Harvard|date=2002-11-15 |accessdate=2007-07-17] Jorgenson states that the plan would provide big gains in economic efficiency that would result from making the tax treatment of income from corporate, non-corporate and household property the same.cite web|url=http://www.ksg.harvard.edu/news/opeds/2002/jorgenson_tax_ft_061802.htm |title=A Smarter Type of Tax |publisher=Financial Times | last=Jorgenson| first=Dale| date=2002-06-18| accessdate=2007-07-17] The plan has been discussed before the United States Congress but a bill has not been introduced. [cite web| url=http://waysandmeans.house.gov/Legacy/srm/107cong/5-9-02/5-9jorg.htm |title=Hearing on the Extraterritorial Income Regime |publisher=House Committee on Ways and Means |last=Jorgenson |first=Dale |date=2002-05-09 |accessdate=2007-07-18]

Under Efficient Taxation of Income, each dollar of new business investment would generate a credit against taxes on business income. The rates for these credits would make tax burdens on all income sources the same. Taxes on new investments by households would be collected by car dealers, real estate developers, and other providers. These would not apply to existing home owners and would protect property values. Jorgenson states that the Efficient Taxation of Income could be implemented without cumbersome transition rules. In the United States, the tax treatment of Social Security and Medicare contributions and benefits would be unaffected, as would the treatment of private pension plans. Jorgenson estimates that the total one-off gain from Efficient Taxation of Income in the U.S. would be $4,900 billion, while adoption of the Flat Tax would yield only $2,060 billion.cite web| title=Efficient Taxation of Income |url=http://www.harvardmagazine.com/on-line/030388.html |last=Jorgenson |first=Dale |publisher=Harvard Magazine|date=2003-04 |accessdate=2007-07-17] The gains underscore the benefits of shifting investment to higher-yielding assets and reflect greater investment and faster economic growth.

ee also

*Income tax in the United States
*Taxation in the United States

Notes

References

*cite book | first=Dale | last=Jorgenson | coauthors=Yun, Kun-Young| year=2002| title=Investment, Vol. 3: Lifting the Burden: Tax Reform, the Cost of Capital, and U.S. Economic Growth| edition=Hardcover|publisher=The MIT Press| id=ISBN 0-262-10091-6

External links

* [http://post.economics.harvard.edu/faculty/jorgenson/bio/bio.html Jorgenson's Harvard biography]


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • taxation — taxational, adj. /tak say sheuhn/, n. 1. the act of taxing. 2. the fact of being taxed. 3. a tax imposed. 4. the revenue raised by taxes. [1250 1300; < ML taxation (s. of taxatio) an appraising (see TAX, ATION); r. ME taxacioun < AF < ML, as… …   Universalium

  • Income trust — An income trust is an investment trust that holds income producing assets. The term also designates a legal entity, capital structure and ownership vehicle for certain assets or businesses. Its shares or trust units are traded on securities… …   Wikipedia

  • Rate schedule (federal income tax) — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • Cancellation of Debt (COD) Income — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • Adjusted gross income — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • Ordinary income — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • Interstate Income Act of 1959 — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • Taxation in New Zealand — is collected at a national level by the Inland Revenue Department (IRD) on behalf of the Government of New Zealand. National taxes are levied on personal and business income, as well as on the supply of goods and services. There is no capital… …   Wikipedia

  • Income inequality metrics — The concept of inequality is distinct from that of poverty[1] and fairness. Income inequality metrics or income distribution metrics are used by social scientists to measure the distribution of income, and economic inequality among the… …   Wikipedia

  • Motoring taxation in the United Kingdom — Taxation in the United Kingdom This article is part of the series: Politics and government of the United Kingdom Central government HM Treasury HM Revenue and Customs Income tax …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”