Business, Management and Accounting
4 years ago

Taxing Labor and Capital Unequally: How It Impacts Society's Education Divide.

RePEc: Research Papers in Economics
How well does a cash-flow tax on wages approximate an economic income tax on labor income?
Martin Weiss

Paper Summary

The article compares a Dual Income Tax to a comprehensive income tax, focusing on how they affect labor and capital income differently. By analyzing German data, the researchers found that the Dual Income Tax leads to unequal advantages for different education levels, causing potential distortions in the economy. They suggest ways to address these issues and tentatively support the Dual Income Tax.

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