There are three main approaches to taxing capital income, being the income tax, the expenditure tax – which effectively exempts most capital income - or hybrids such as the rate of return allowance (RRA). This paper considers the theoretical arguments for taxing capital income less than fully, and finds that they need to be qualified...

This Review (also known as the Henry Tax Review) considers how Australia can best structure its tax and transfer system to meet the challenges of the 21st century and to enhance its economic and social outcomes. The Review identified a wide range of reform opportunities that can deliver this vision. The main directions and proposals...

This policy brief assesses the advantages and disadvantages of indirect taxes over direct taxes. The appropriate choice for individual countries depends on circumstances, but particularly on views about the relative importance of growth and inequality as well as the ability to offset the effects of inequality through other measures without harming growth.

Prior to the last three decades, regular surveys on household income were rare or nonexistent in many developed countries, making it difficult for economists to compare income distribution in the long run. Using taxation statistics, which tend to be available over a longer time span, Andrew Leigh propose a method for imputing the incomes of...