Taxing the Capital Income of Only The Poor and the Middle Class

Research Report

Taxing the Capital Income of Only The Poor and the Middle Class

April 11, 2005

Abstract

Perhaps the most significant and divisive tax debate of the past three decades has been over whether taxes on income ought to be replaced with taxes on consumption. Almost all of the large-scale reform efforts proposed during that period have sought that goal, even though the methods vary widely. But would the adoption of any of these taxes actually remove the taxation of capital income? From what has been proposed so far, no.

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