Tuesday, June 10, 2014
Avi-Yonah on "Making the Modern American Fiscal State"
The following is a post from Reuven Avi-Yonah:
This is an important and exciting book. Two questions:
1. To what extent did the lack of emphasis on the expenditure side of the budget in assessing progressivity, which Ajay characterizes as a mistake, lead to the current imbalance in U.S. tax policy (no VAT)?
2. Ajay emphasizes the role of Seligman in moving from benefits to ability to pay taxation. But Seligman was also a major figure shaping the international tax regime on a benefits basis. How can the two be reconciled, and what are the implications for the current attempts to revive benefits theories of taxation?