Does Old Capital Matter for Implementing a Pareto-Improving Tax Reform?

Is it possible to replace the income tax by a consumption tax or a wage tax such that (1) a dynamic (intergenerational) Pareto improvement is obtained and (2) only the information available from enforcing the income tax is used? In this article, it is shown that such a transition is feasible if and only if in a static setting, the consumption or wage tax induces less distortions than the income tax.

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Year of publication:	2004
Authors:	Gaube, Thomas ; Schwager, Robert
Published in:	Public Finance Review. - Vol. 32.2004, 2, p. 220-231

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010552824