In this paper it is analysed, how, under price discrimination, the tax burden is shared between the distinct consumer groups. Unit and ad valorem taxes are compared, revealing an impossibility of fiscal discrimination with regard to price changes. Contrary to conventional tax incidence analysis,...

This paper shows that prices respond asymmetrically to increases and decreases in consumption taxes. We combine monthly commodity price data with information on Value Added Tax (VAT) rates across several European countries for the period 1996-2015 and show that prices respond more to VAT...

This paper applies the concept of an Inequality Deflator to evaluate the relative value of capital versus individual income. As the shareholders of businesses are typically higher income earners than the average person (and the typical consumer), money transferred to business owners or...

“Tax expenditures” are government subsidies that are provided through the tax code, by granting tax credits or other tax benefits in exchange for goods and services that government values. Politically, tax expenditures are valued because they increase government intervention without...