The case for wealth taxation
Article Abstract:
This paper explores the reasons used to support the omission of wealth tax from the federal tax base. The primary reasons for the demise of the former inheritance tax are examined in order to anticipate arguments which may be made against the reintroduction of wealth taxation. The author bases her main arguments on the need to enhance vertical equity in the taxation system by distributing tax burdens in a progressive manner in accordance with an individual's ability to pay. Wealth taxation may also play a role in impeding large concentrations of wealth. Moreover, if wealth taxation does in fact contribute to ameliorating income and wealth disparities, then substantive equality of opportunity may become a reality rather than a vision of Canadian society. The main concerns often voiced against the introduction of new wealth taxes are examined and found wanting. In particular the author examines the economic concerns, on both macro and micro levels, which are often raised against the imposition of wealth taxation.The author concludes that taxation on transfers of wealth and annual net worth are warranted, but cautions that considerable care, planning and sensitivity must accompany their proposed structure and implementation. (Reprinted by permission of the publisher.)
Publication Name: Canadian Public Administration
Subject: Government
ISSN: 0008-4840
Year: 1991
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Bid rents under unemployment risk: delayed versus timeless uncertainty
Article Abstract:
An extension of the analysis of DeSalvo and Eeckhoudt was performed by recasting their model in a bid rent approach to allow the analysis of the properties of the bid rent function in an uncertain context. The properties of the bid rent function are significantly influenced by the manner by which uncertainty is incorporated into the model, characterized by either delayed or timeless uncertainty. In delayed uncertainty, decisions on price and housing demand are made before the risk is known. In the timeless model, flexibility is achieved by changing housing and composite good consumption according to observed income. This flexibility in the timeless model leads to a higher bid rent level. Partly due to the difference between the bid rents, the two models may occasionally generate varying comparative statics forecasts in terms of housing consumption. An unemployment benefit program helps improve welfare in a delayed risk model, not in a timeless risk model.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1997
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Land taxation and the Henry George theorem under uncertainty
Article Abstract:
Land taxation under uncertainty is considered and found that at an optimal population of a jurisdiction, aggregate land rents of a jurisdiction equal expenditures on public goods, dubbed by the Henry George theorem. The results state that the public good in jurisdiction should be financed only by land taxes.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 2005
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