“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.
“Taken together, these essays provide a panoramic view of the theoretical and policy issues associated with the taxation of capital income. Public finance specialists and students alike will be grateful to have all this excellent material pulled together in a single volume.”
—Harvey S. Rosen, John L. Weinberg Professor of Economics and Business Policy, Department of Economics, Princeton University
“This volume offers important insights on the current tax treatment of capital income, on the feasibility of various reform options, and on the economic consequences of changing this fundamental aspect of the tax system. The component studies advance our understanding of both income and consumption taxation, and any serious student of federal tax policy will learn from them.”
—James Poterba, Mitsui Professor of Economics, Department of Economics, Massachusetts Institute of Technology
“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
“This book is filled with information and insights on a critical aspect of tax policy—a must read for anyone concerned with these issues.”
—Michael Graetz, Justus S Hotchkiss Professor of Law, Yale University Law School
