Skip to main content

The Superiority of a Consumption-based Tax System

  • Conference paper

Abstract

A major objective of setting up this congress was to further the academic and public debate on taxing consumption, but I especially hope that this congress will contribute to a more intensive consideration in the debate on the German tax reform of the opportunities, and of course risks, connected with the different approaches towards a consumption-based tax system.

Every tax like every other social institution will outlive the period of its economic and psychological appropriateness. But as in all other social institutions, in tax systems rigidities will not live for ever: they will be washed-out gradually by the flow of time. Thus, income tax will disappear together with the economic system and mentality [of the bourgeois liberalism], to which it owes its existence.

Joseph A. Schumpeter1

Slightly extended version of the lecture held at the opening ceremony of the congress. Some expositions refer especially to the German debate on the reform of the German tax system. I owe a special debt of gratitude to Antoinette Broek, who translated the German text. I would also like to thank Michael Ahlheim for helpful suggestions on an earlier version.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Boadway, R./ Bruce, N. (1984), A general Proposition on the Design of a Neutral Business Tax, Journal of Public Economics 24, pp. 231–239.

    Article  Google Scholar 

  • Bradford, D.F./The U.S. Treasury Tax Policy Staff (1984), Blueprints for Basic Tax Reform, 2nd ed., Washington, D.C.: Tax Analysts. (Orig. pub. as U.S. Treasury Department, 1977).

    Google Scholar 

  • Bradford, D.F. (1986), Untangling the Income Tax, Cambridge, Massachusetts, and London, England: Harvard University Press.

    Google Scholar 

  • Haig, R.M. (ed.) (1921), The Federal Income Tax, New York: Columbia University Press.

    Google Scholar 

  • Haller, H. (1964), Die Steuern, Tübingen: J.C.B. Mohr (Paul Siebeck).

    Google Scholar 

  • Kaldor, N. (1965), An Expenditure Tax, 4th impression, London: Unwin University Books.

    Google Scholar 

  • Lang, J. (1985), Reformentwurf zu Grundvorschriften des Einkommensteuergesetzes, Köln: Verlag Dr. Otto Schmidt KG.

    Google Scholar 

  • Lerner, A.P. (1951), Economics of Employment, New York: McGraw-Hill.

    Google Scholar 

  • Lodin, S.O. (1978), Progressive Expenditure Tax — An Alternative?, Report of the 1972 Government Commission on Taxation, Stockholm: LiberForlag.

    Google Scholar 

  • Mitschke, J. (1985), Steuer-und Transferordnung aus einem Guß, Baden-Baden: Nomos Verlagsgesellschaft.

    Google Scholar 

  • Musgrave, R.A. (1985), A Brief History of Fiscal Doctrine, in: AJ. Auerbach/ M. Feldstein (eds.), Handbook of Public Economics, Vol. I, pp. 1–59, Amsterdam: North-Holland.

    Google Scholar 

  • Neumark, F. (1970), Grundsätze gerechter und ökonomisch rationaler Steuerpolitik, Tübingen: J.C.B. Mohr (Paul Siebeck).

    Google Scholar 

  • Rose, M. (ed.) (1990), Konsumorientierte Neuordnung des Steuersystems, Berlin und Heidelberg: Springer-Verlag.

    Google Scholar 

  • Schumpeter, J.A. ((1918) 1954), The Crisis of the Tax State, in: A.T. Peacock et. al. (1954), International Economic Papers, pp. 5–38. Translation of “Die Krise des Steuerstaates”, Graz und Leipzig 1918.

    Google Scholar 

  • Schumpeter, J.A. (1929/1930), Öxonomie und Soziologie der Einkommensteuer, Der deutsche Volkswirt, Bd. 4, pp. 380–385, reprinted in: W.F. Stolper/ Chr. Seidl (ed.) (1985), Joseph A. Schumpeter, Aufsätze zur Wirtschaftspolitik, Tübingen: J.C.B. Mohr (Paul Siebeck), pp. 123-132.

    Google Scholar 

  • Shoup, C.S. (1984), The Schanz Concept of Income and the United States Federal Income Tax, Finanzarchiv 42, pp. 433–444.

    Google Scholar 

  • Sievert, O. (1988), Änderung der Steuerstruktur in Richtung auf mehr Ausgabenbesteuerung ?, in: H. Zimmermann (ed.), Die Zukunft der Staatsfinanzierung, Stuttgart: Wissenschaftliche Verlagsgesellschaft, pp. 85–103.

    Google Scholar 

  • Simons, H. (1938), Personal Income Taxation: The Definition of Income as a Problem of Fiscal Policy, Chicago: University of Chicago Press.

    Google Scholar 

  • Sinn, H.-W., (1987), Capital Income Taxation and Resource Allocation, Amsterdam and New York: North-Holland.

    Google Scholar 

  • Wagner, A. (1890), Lehr-und Handbuch der politischen Ökonomie, 4. Hauptabteilung, Finanzwissenschaft, 2. Teil, Theorie der Besteuerung, Gebührenlehre und allgemeine Steuerlehre, 2. Aufl., Leipzig: CF. Winter’sche Verlagshandlung.

    Google Scholar 

  • Wenger, K. (1988), Besteuerung und Kapitalbildung als intertemporales Optimierungsproblem, in: H. Hax/ W. Kern/ H.H. Schröder (eds.), Zeitaspekte in betriebswirtschaftlicher Theorie und Praxis, Stuttgart, pp. 279–295.

    Google Scholar 

  • Wicksell, K. (1896), Finanztheoretische Untersuchungen nebst Darstellung und Kritik des Steuerwesens, Jena.

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 1990 Springer-Verlag Berlin · Heidelberg

About this paper

Cite this paper

Rose, M. (1990). The Superiority of a Consumption-based Tax System. In: Rose, M. (eds) Heidelberg Congress on Taxing Consumption. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-75791-4_1

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-75791-4_1

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-75793-8

  • Online ISBN: 978-3-642-75791-4

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics