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Horizontal Equity and Choice between Income and Expenditure Taxes

Publication Type : Journal Article

Publisher : Economic and Political Weekly

Source : Economic and Political Weekly, vol. Vol. 22, 1987

Url : https://www.epw.in/journal/1987/12/special-articles/horizontal-equity-and-choice-between-income-and-expenditure-taxes

Campus : Amritapuri

School : School of Economics

Center : Amrita Center for Economics & Governance (ACEG)

Department : Department of Economics

Year : 1987

Abstract : Horizontal Equity and Choice between Income and Expenditure Taxes M N Murty This paper argues that while an expenditure tax is superior to an income tax from the point of view of horizontal equity and other economic objectives, partial tax reforms like substituting an expenditure tax for a personal income tax may not be welfare improving. An attempt is made to provide a method of estimation of incidence of revenue policies that affect consumer expenditure (commodity taxes, public sector commodity price-cost mark-ups and an expenditure tax) on people in various expenditure classes in the economy Finally, some estimates are presented of distribution of burden of commodity and personal income taxes in India by household consumer expenditure classes.

Cite this Research Publication : Maddipati Narsimha Murty, “Horizontal Equity and Choice between Income and Expenditure Taxes”, Economic and Political Weekly, vol. Vol. 22, 1987

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