Kurokawa, Hirofumi; Mori, Tomoharu; Ohtake, Fumio - 2016
We test the equivalence of income and consumption taxes through a choice experiment. Under a given set of income and … consumption parameters, subjects were asked to choose among an income tax of 20%, a consumption tax of 25% (which is an equivalent … tax burden), a consumption tax of 22%, and a consumption tax of 20%. Our results showed that subjects prefer income tax to …