| dc.description.abstract | In this paper the efficiency, savings and inequality effects of income and expenditure taxes are reexamined. It is shown that current welfare is likely to be promoted by a mix of the two taxes rather than either tax alone. Additionally, it is conceivable for ability to save to be at a maximum with such a tax mix. Further, it is distinctly possible that income taxes rather than expenditure taxes encourage saving especially when human saving (education) is taken into account. Finally, income taxes, it is argued, are likely to be more equilitarian than expenditure taxes. Thus, doubts are cast on the desirability of expenditure taxes as compared to income taxes. | en |
