Taxing Capital Income (Urban Institute Press) - Softcover

Burman, Leonard E.; Aaron The Brookings Institution, Henry J.; Steuerle, C. Eugene

Softcover

ISBN 10: 0877667373 ISBN 13: 9780877667377

Publisher: Rowman & Littlefield Publishers, 2007

Synopsis

The question of whether to tax income from wealth has sparked debate since our country’s inception. Does taxing capital income ensure the progressivity of our system or merely discourage saving? Would switching our tax code to one that taxes only consumption be more efficient or only burden middle- and low-income people? And if we were to radically reform the way America taxes its citizens, how could we ensure that vital revenue would not be lost? Some analysts would even argue that, under our present byzantine tax system, we don’t really tax capital income at all. In this volume, eminent economists analyze the problems associated with taxing capital income and propose policy solutions, which are then challenged by their peers in informed commentary. It may not settle the debate, but policymakers, scholars, and the public will find a wealth of information and ideas to consider.

About this title

About the Author

Henry J. Aaron is currently a Bruce and Virginia MacLaury Senior Fellow in the Economic Studies Program at the Brookings Institution. From 1990 through 1996, he was the director of the Economic Studies Program. In 1996, he was a Guggenheim Fellow at the Center for Advanced Studies in the Behavioral Sciences at Stanford University. From 1967 to 1989, he taught economics at the University of Maryland. He also served as assistant secretary for planning and evaluation in 1977 and 1978 at the Department of Health, Education, and Welfare, and in 1979, chaired the Advisory Council on Social Security. He has been vice president and member of the executive committee of the American Economic Association and president of the Association of Public Policy and Management.

Leonard E. Burman is director of the Tax Policy Center, senior fellow at the Urban Institute, and visiting professor at Georgetown University. Dr. Burman served as deputy assistant secretary of the Treasury for Tax Analysis from 1998 to 2000, and as senior analyst at the Congressional Budget Office from 1988 to 1997. He is the author of The Labyrinth of Capital Gains Tax Policy: A Guide for the Perplexed, and numerous articles, studies, and reports. He is also a commentator for Marketplace. His recent research has examined the individual alternative minimum tax, the changing role of taxation in social policy, and tax incentives for savings, retirement, and health insurance.

C. Eugene Steuerle is a senior fellow at the Urban Institute and codirector of the Urban Brookings Tax Policy Center. He is also the author, coauthor, editor, or coeditor of eleven books and close to 1,000 reports, articles, columns, testimonies, and reports. His latest book is Contemporary U.S. Tax Policy. Among many other positions, he has served as deputy assistant secretary of the Treasury for Tax Analysis (1987-1989), president of the National Tax Association (2001-2002), chair of the 1999 Technical Panel advising Social Security on its methods and assumptions, and president of the National Economists Club Educational Foundation. Between 1984 and 1986, he served as Economic Coordinator and original organizer of the Treasury's tax reform effort, for which one top Treasury wrote that 1986 tax reform "would not have moved forward without your early leadership."

Review

The continued taxation of income from capital is under threat, both for theoretical and practical reasons, and may well be the most important tax policy issue addressed during the 21st century. This volume splendidly lays out in a clear, evenhanded manner the current state of knowledge about this topic: the empirical data on the taxation of capital income today; the theoretical arguments why it should or should not be taxed; and the pragmatic reasons why continued taxation may simply not be feasible. It is vital reading for anyone interested in this critical public policy issue. --George K. Yin, Edwin S. Cohen Distinguished Professor of Law and Taxation, University of Virginia, and Former Chief of Staff, U.S. Joint Committee on Taxation, 2003-2005

This book is a must-read for anyone interested in fundamental tax reform. The authors bring a variety of perspectives to the topic, but they uniformly look beyond simple-minded slogans to provide thorough and accessible analysis of the complex questions raised by reform plans. The chapters examine both theoretical and practical issues, including equity, efficiency, political feasibility, international provisions, transition policy, and compliance concerns. The book will disappoint those hoping for easy and definitive answers to all of these questions, but will be welcomed by those seeking informed and thoughtful discussion of the issues. --Alan D. Viard, Resident Scholar, American Enterprise Institute

Proposals aimed at reforming capital income taxes are drawing more attention as globalization and declining capital tax rates around the world have drastically changed the competitive environment facing U.S. firms. Moreover, the growth in multinational firms and globalization has substantially increased the complexity associated with taxing capital income. This volume offers a comprehensive and timely review of the economic and political arguments for the taxation of capital income and should help advise the debate on reforming in the U.S. and around the world. --John W. Diamond, Kelly Research Fellow in Tax Policy, James A. Baker III Institute for Public Policy

About this edition

• Publisher: Rowman & Littlefield Publishers
• Publication date: 2007
• ISBN 10: 0877667373
• ISBN 13: 9780877667377
• Binding: Paperback
• Edition number: 1
• Number of pages: 366