Skip to main content
shopping_cart

Your shopping cart is empty

Taxing capital income

Published on 01 Apr 07 by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE

This paper provides an overview and assessment of alternative methods of taxing capital income. We begin by considering why, and to what extent, capital income should be taxed. Having established a reasonably robust case for such taxation, we then review the difficulties of taxing capital income within the comprehensive income tax framework. We acknowledge that the comprehensive income tax approach could be problematic and review newer business tax initiatives, including the dual income tax, the comprehensive business income tax, and the various types of cash flow business taxes, including the allowance for corporate equity. These approaches mostly place heavier reliance on the business tax rather than the personal tax as the vehicle for capital income taxation. The cash flow taxes can be combined in various ways with personal taxes on consumption and wage income. We find that the different approaches to taxing capital income have their own particular advantages and disadvantages.

Author profiles:

Prof Richard Krever
Richard works in Taxation Law and Policy Research Institute, Monash University. Current at 01 March 2011 Click here to expand/collapse more articles by Richard KREVER.
 
John HEAD
Taxation Law and Policy Research Institute, Monash University.
Current at April 2007
Click here to expand/collapse more articles by John HEAD.
Copyright Statement