On Inflation as a Regressive Consumption Tax
Author: Andrés Erosa
Publisher: London : Department of Economics, University of Western Ontario
Published: 2000
Total Pages: 39
ISBN-13: 9780771422300
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Author: Andrés Erosa
Publisher: London : Department of Economics, University of Western Ontario
Published: 2000
Total Pages: 39
ISBN-13: 9780771422300
DOWNLOAD EBOOKAuthor: Charles Gottlieb
Publisher:
Published: 2015
Total Pages:
ISBN-13:
DOWNLOAD EBOOKThis paper undertakes a quantitative investigation of the effects of anticipated inflation on the distribution of household wealth and welfare. Consumer Finance Data on household financial wealth suggests that about a third of the US population holds all its financial assets in transaction accounts. The remaining two-third of the US population holds most of their financial assets outside transaction accounts. To account for this evidence, I introduce a portfolio choice in a standard incomplete markets model with heterogeneous agents. I calibrate the model economy to SCF 2010 US data and use this environment to study the distributive effects of changes in anticipated inflation. An increase in anticipated inflation leads households to reshuffle their portfolio towards real assets. This crowding-in of supply for real assets lowers equilibrium interest rates and thereby redistributes wealth from creditors to borrowers. Because borrowers have a higher marginal utility, this redistribution improves aggregate welfare. First, this paper shows that inflation acts not only a regressive consumption tax as in Erosa and Ventura (2002), but also as a progressive tax. Second, this paper shows that the welfare cost of inflation are even lower than the estimates computed by Lucas (2000) and Ireland (2009). Finally, this paper offers insights into why deflationary environments should be avoided.
Author: Amotz Morag
Publisher:
Published: 1965
Total Pages: 196
ISBN-13:
DOWNLOAD EBOOKAuthor: John Creedy
Publisher:
Published: 1997
Total Pages: 19
ISBN-13: 9780732509460
DOWNLOAD EBOOKAuthor: William Fellner
Publisher:
Published: 1942
Total Pages: 204
ISBN-13:
DOWNLOAD EBOOKAuthor: Michael A. Schuyler
Publisher:
Published: 1984
Total Pages: 166
ISBN-13:
DOWNLOAD EBOOKPart of the Fiscal Series published by Institute for Research on the Economics of Taxation. A discussion on the effect of consumption taxes and their effect on income tax.
Author: Robert Carroll
Publisher: Rowman & Littlefield
Published: 2012
Total Pages: 224
ISBN-13: 0844743941
DOWNLOAD EBOOKThe authors observe that consumption taxation is superior to income taxation because it does not penalize saving and investment and propose that the U.S. income tax system be completely replaced by a progressive consumption tax. They argue that the X tax, developed by the late David Bradford, offers the best form of progressive consumption taxation for the United States and outline concrete proposals for the X tax's treatment of numerous specific economic issues.
Author: Mr. Kangni R Kpodar
Publisher: International Monetary Fund
Published: 2021-11-12
Total Pages: 34
ISBN-13: 1616356154
DOWNLOAD EBOOKThis paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.
Author: Katherine S. Newman
Publisher: Univ of California Press
Published: 2011-02-27
Total Pages: 262
ISBN-13: 0520269675
DOWNLOAD EBOOK"New South? Not really. A compelling demonstration that the South's regressive taxation wreaks so much havoc that the federal government has no choice but to swoop in at great cost and attempt to band-aid all the poverty and dysfunction. The best argument yet for a new federalism that says enough is enough."—David B. Grusky, Stanford University “Taxing the Poor makes extremely important points that are not now—but must be—part of the American discussion of poverty and social policy. The authors make these points with fascinating details on the history of how we got to this place. Bravo to Newman and O’Brien for thoroughly laying out a politcal economy of taxation.”—Robin Einhorn, author of American Taxation, American Slavery
Author: Stephen Vogt
Publisher:
Published: 1988
Total Pages: 54
ISBN-13:
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