There is a widespread view that the appropriate basis for taxation is an individual's lifetime consumption (or

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There is a widespread view that the appropriate basis for taxation is an individual's lifetime consumption (or lifetime income). Discuss the inequities and inefficiencies that would arise from a consumption tax that had increasing marginal tax rates but no provisions for averaging years of low consumption with years of high consumption. Would these problems also arise under a fl at-rate consumption tax?

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Economics Of The Public Sector

ISBN: 9780393925227

4th Edition

Authors: Joseph E. Stiglitz, Jay K. Rosengard

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