TAILIEUCHUNG - Lecture Public finance (10/e): Chapter 21 - Harvey S. Rosen, Ted Gayer

Chapter 21 - Fundamental tax reform: Taxes on consumption and wealth. In this chapter we will discuss: How a value-added tax works, efficiency and equity of personal consumption taxes, rationalizations for sales taxes, efficiency and distributional implications of states sales taxes,. | FUNDAMENTAL TAX REFORM: TAXES ON CONSUMPTION AND WEALTH Chapter 21 How a Value-Added Tax Works Producer Purchases Sales Value Added VAT at 20 Percent Rate Farmer $ 0 $400 $ 400 $ 80 Miller 400 700 300 60 Baker 700 950 250 50 Grocer 950 1,000 50 10 Total $2,050 $3,050 $1,000 $200 21- Efficiency and Equity of Personal Consumption Taxes Efficiency issues An income tax and saving and labor supply decisions A consumption tax and saving and labor supply decisions 21- Efficiency and Equity of Personal Consumption Taxes Equity issues Progressiveness Ability to pay Annual versus Lifetime Equity A numerical example A formal model 21- Annual versus Lifetime Equity – A Numerical Example Parameters Income tax rate = 50% Consumption tax rate = 50% Interest rate = 10% Mr. Grasshopper Ms. Ant Income tax Consumption tax Income tax Consumption tax Income period 0 $1,000 $1,000 $1,000 $1,000 Consumption period 0 $500 $500 $0 $0 Taxes period 0 $500 $500 $500 $0 Income

• Tài chính doanh nghiệp
• Public finance
• Lecture Public finance
• Public expenditure
• Fundamental tax reform
• Retail sales tax
• Personal consumption taxes
• Public Economics
• Federal system
• Fiscal federalism
• Public good
• Public spending
• Public education
• Tiebout model
• Public sector economics
• Federal government
• The corporation tax
• Tax equity
• Public goods
• Public services
• Inflation taxation
• Education Increase Earnings
• Public education improves quality
• Interpreting deficit
• Burden of the debt
• Neoclassical model
• Political economy
• Median voter model
• Special interest
• Public economy
• Legal framework
• Local governments
• Market mechanism
• Coase Theorem
• Public Responses
• Public employees
• Representative democracy
• Tools of positive analysis
• Positive analysis
• Empirical work
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• Tools of normative analysis
• Welfare economics
• Nature of externalities
• Graphical analysis
• Cost benefit analysis
• Internal rate
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• Health care market
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• Risk pooling
• Moral hazard
• Market for health care
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• Health insurance
• Social security
• Benefit structure
• Savings behavior
• Income redistribution
• Distributional dataissues
• Income inequality
• Expenditure programs
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• Work incentives
• Income distribution
• Tax incidence
• Partial equilibrium models
• Tax on consumption bundle
• Excess burden
• Demand curves
• Equitable taxation
• Optimal commodity taxation
• The ramsey rule
• Personal income tax
• Haig simons income
• Capital gains
• Personal taxation
• Human capital accumulation
• Labor supply